Retailers are being urged to review their pricing practices and make sure customers can see the total cost of products up front, following a reminder from the Competition and Markets Authority (CMA) about mandatory delivery charges.
The CMA’s open letter to online retailers highlights requirements under the Digital Markets, Competition and Consumers Act 2024, including the need to show the total price of a product with any mandatory delivery or collection fees throughout the sales process.
This applies wherever a price is shown, including advertising, product pages, baskets, checkout and payment pages, with the CMA warning that some businesses remain non-compliant in how they present delivery charges.
Retailers with optional delivery charges must also make clear throughout the purchasing process that these charges apply, while information about additional costs should not be hidden behind separate pages, menus or expandable sections.
The CMA said businesses should review their pricing practices against its Price transparency (CMA209) guidance and make any necessary changes so customers receive clear, prominent and timely information about the total price they are likely to pay.
The CMA is continuing to monitor pricing practices across online retail and said it may take enforcement action where non-compliance continues, with the DMCC Act allowing for substantial penalties and redress for affected consumers.
