Government launches consultation on consumer price transparency and product information

The Department for Business and Trade launched its consultation on "Smarter Regulation: Improving consumer price transparency and product information for consumers" on 4 September 2023, and it concluded on 15 October 2023¹. The government has now published its response, setting out policy decisions across five areas: the display of pricing information, hidden fees and drip pricing, fake and misleading reviews, online platforms, and online interface orders¹.

On pricing display, 214 individuals or organisations responded, and the majority strongly agreed with the proposals¹. The government proposes to amend the Price Marking Order 2004, which is retained EU law and requires traders to display the final selling price and, where appropriate, the final unit price, such as per litre or kilogram, in a clear and upfront manner, with the selling price including any taxes¹. Article 7 of the order requires that the selling price and unit price are "unambiguous, easily identifiable, and clearly legible"¹. The government's proposals substantially reflect the recommendations in the Competition and Markets Authority report of 20 July 2023 on unit pricing¹.

The consultation asked about mandating consistent units for unit pricing, so that products sold by weight would be priced per kilogram and products sold by volume per litre. 94% of respondents agreed with the proposal, while 75% of individuals and 68% of businesses said exceptions should not be made or continue to apply¹. A consumer survey of 2,007 people found that 46% considered the unit price when making a purchasing decision, 80% agreed unit pricing helps consumers get greater value for money, 84% agreed comparability and consistency of unit pricing of similar items was important, and 92% favoured larger displays of unit pricing information¹.

Response numbers by policy area were as follows¹:

On drip pricing, the government says it will clarify the law through new requirements in the Digital Markets, Competition and Consumers Bill, requiring unavoidable or mandatory fees to be included in the headline price or indicated at the start of the purchasing process¹. It also plans to prohibit commercial practices related to fake reviews by adding them to the list of practices considered unfair in all circumstances, making them subject to civil liability¹.

Separate research published by Which? on 13 October 2023 examined drip pricing in air travel, takeaway food delivery and event tickets². Its survey of 2,074 consumers found 86% saw drip pricing as "sneaky" and only 10% considered such charges fair, while 81% thought fees were more acceptable if shown upfront². The report cites government research finding that nearly half, 46%, of online and mobile app providers included at least one dripped fee, not including delivery charges, at checkout, with the average dripped mandatory price at 6% of the base price².

Why it matters for households

The Price Marking Order governs how prices are shown on shelves and labels, so changes to unit pricing and legibility affect what shoppers see when comparing similar products in shops¹. The government says it will work with stakeholders on whether exceptions should remain, for example for low weight or volume products, and will consider the interaction with weights and measures law¹. On drip pricing, the proposed requirements would mean mandatory fees must appear in the headline price or be indicated at the start of the buying process, rather than being added later¹. Fake reviews would become unfair in all circumstances and subject to civil liability¹. The consultation responses reflect views gathered between 4 September and 15 October 2023, and the government's stated positions are proposals rather than rules already in force¹.

What happens next

The government says it intends to publish information in spring 2024¹. DEFRA, the Welsh Government and the Department of Agriculture, Environment and Rural Affairs in Northern Ireland plan to introduce a Deposit Return Scheme applying to England, Northern Ireland and Wales in October 2025, and the government will work with them on displaying the deposit separately on price labels¹. It will also undertake further stakeholder engagement on platform obligations and continue to explore extending private redress rights to further unfair commercial practices¹. How new rules are made and how to respond is set out in the site's guide to consultations and discussion papers, with further background in the regulation and policy section.