Fake reviews and sneaky hidden fees banned ‘once and for all’

Outrageous fake reviews and sneaky hidden fees are now banned once and for all in a major win for consumers right across the UK

  • Fake reviews and hidden fees that cost consumers £2.2bn every year now banned 
  • CMA takes on major new powers to directly enforce new consumer laws 
  • Changes will protect consumers and create a more level playing field for businesses, helping to deliver economic stability as part of the Plan for Change 

Outrageous fake reviews and sneaky hidden fees are now banned once and for all in a major win for consumers right across the UK. These laws will help deliver economic stability as part of the Plan for Change. 

The new measures coming into force today will give the public control over their cash and save them money in the long run.

All mandatory fees, such as admin fees or ticket booking fees, must now be included in the headline price and can’t be deceptively dripped in throughout the checkout process, to dupe customers into paying more than they originally bargained for.  

The ban aims to bring to an end the shock that online shoppers get when they reach the end of their shopping experience only to find a raft of extra fees lumped on top. 

So, for shoppers buying train tickets – they won’t be stung by a hidden booking fee at the end of the checkout. 

When buying a takeaway, the delivery and admin fees must be clear at the start of the process.

The same will apply to all online shopping experiences from concert tickets to trips to the cinema. 

Every year a whopping £2.2 billion is spent by consumers on unavoidable hidden fees, which is why these new rules are coming into force.  

Not only will it create greater transparency, but it will make it far easier for consumers to confidently compare products and services to make sure they are getting the best bang for their buck.  

Justin Madders, Minister for Employment Rights, Competition and Markets, said: “From today consumers can confidently make purchases knowing they are protected against fake reviews and dripped pricing.  

“These changes will give consumers more power and control over their hard-earned cash, as well as help to establish a level playing field by deterring bad actors that undercut compliant businesses, helping to deliver economic stability as part of our Plan for Change.”

Outlandish fake reviews will also be banned today – so customers know what they are buying when they shop online.

The legislation will prevent punters turning up to a restaurant with 5-star reviews only to be served 1-star quality food. Or ordering a product online from a top-rated seller only to find it never turns up, or that when it does, it doesn’t look anything like it did in the picture, despite what previous buyers said. 

Reviews were found to be used by 90% of consumers and contributed to the £217 billion spent in online retail markets in 2023, underscoring the importance of these new consumer protection laws. 

New laws will also help prevent well-intentioned and compliant businesses from being under-cut by those seeking to catch out consumers with stealthy additional prices and fake reviews.  

Sarah Cardell, Chief Executive of the CMA, said: “We will use these new provisions to safeguard people from harmful and unfair treatment, and to foster the level-playing field for the vast majority of businesses who want to do the right thing for their customers.

“We will be tackling the more egregious practices first and working hard to support businesses with compliance, conscious that – especially for small businesses – the burden of following the rules must be proportionate.”

This new consumer protection regime will be implemented by the Competition and Markets Authority (CMA) in a way that is as simple as possible for smaller businesses to comply with.

This government is committed to taking action to reduce unnecessary burdens on business, meaning that should any new rules be required, these will be as clear as possible and only used where necessary and proportionate.

Diners unaware of rip-off charges with food delivery apps

Confused customers unaware of huge price increases on popular services

TRUSTING diners are being hit by hidden costs when using food delivery apps – with almost half totally unaware of the additional charges they are racking up.

New research commissioned by hospitality technology firm Grafterr, has revealed that 43% of restaurant customers don’t know they’re paying substantially more when ordering their favourite takeaway on popular delivery apps.

Now the firm has revealed the full extent of its research with 2000 restaurant customers, while also sharing a series of tips for those keen to avoid the worst fees.

Andrew Gibbon, Chief Operating Officer of restaurant technology specialist Grafterr, which commissioned the research, said: “Online food aggregators continue to be the most popular method of ordering a delivery across the UK.

“Yet these findings show there is a huge gap in consumer awareness of the costs increases.

“We believe it is vital for customers to understand that they are always paying more to have food delivered than they would if they were dining in at the same venue.”

He also outlines some shocking examples from the High Street, where customers can end up paying 90% more than they need to when having meals delivered via apps.

Examples include the popular Big Mac meal from fast food giant McDonalds. In-store diners will pay £5.69 for a medium meal, but when ordering the same meal via Deliveroo, it’ll cost £9.58 – a 68% increase.

However, the additional charges don’t end there, because customers will still have to pay extra delivery charges, taking the cost of the Big Mac meal to £11.07, meaning the total amount paid is almost doubled (+95%).

Customers of Five Guys also face hefty fees for deliveries. A Bacon Cheeseburger in-store will cost £12.15, but to get the same item delivered can cost up to £16.29, a 34% increase.

Grafterr found the hidden fees for the Five Guys burger also vary according to the delivery app used:

  • Deliveroo: £14.80 (£16.29 inc delivery)
  • UberEats: £14.98 (£15.22 inc delivery)
  • JustEat: £12.95 (£14.24 inc delivery)  

Despite the scale of the extra fees being imposed on customers, the survey found that most diners (75%) actually expect to pay LESS when ordering a delivery compared to dining in the same restaurant.

Andrew from Grafterr added: “Despite what customers expect, businesses continually price their online menus higher than their in-store equivalent to help absorb commissions charged by the delivery platforms.

“This is before additional platform fees, service fees and delivery costs are charged to the consumer, all of which can increase your bill by up to 90% in some instances.”               

Consumers are not the only ones concerned about rising costs driven by these platforms. With commission rates reaching up to 30%, hospitality venues are finding it increasingly more difficult to deliver savings to their customers.

In 2023, KFC made the controversial decision to leave Deliveroo due to rising commission costs, highlighting the wider impact on both consumers and businesses.

As well as revealing its survey findings, Grafterr has also offered a series of tips for customers on how they can avoid the worst add-on fees to get the best possible deals:  

  • Order directly with the business through their own online platforms, avoiding additional third-party costs.
  • Dine in where possible.
  • Order and collect in-store for smaller orders to avoid service, small order and delivery fees which can add 25% on to the cost of the meal.
  • Sign up to the mailing list for each delivery platform. They often send out discount codes which can reduce the cost of your meal. For example, UberEats has been known to regularly send out 50% off promotions.  

These are the findings from the survey on a city-by-city basis. The survey of 2000 restaurant customers was carried out by research experts Opinion Matters:

City% of diners unaware of the increased fees for deliveries% of restaurant customers who’d expect to pay less for deliveries than dining in
Belfast33%81%
Birmingham47%73%
Brighton49%73%
Bristol51%77%
Cardiff36%70%
Edinburgh41%78%
Glasgow52%75%
Leeds53%81%
Liverpool59%74%
London36%74%
Manchester32%78%
Newcastle56%74%
Norwich53%82%
Nottingham35%76%
Plymouth49%78%
Sheffield47%69%
Southampton46%74%

To learn more about Grafterr, visit: https://www.grafterr.com/