UK's Competition and Markets Authority (CMA) issues additional advice on the 'drip pricing' regulations outlined in the Digital Markets, Competition, and Consumer Act (DMCCA)

The Digital Markets Competition and Consumers Act (DMCCA), published on 1st August 2025, aims to combat misleading pricing practices and ensure transparency for consumers [1]. Under the DMCCA, businesses are required to display the "total price" of a product or service upfront, prohibiting "drip pricing" practices [1][2].

The Competition and Markets Authority (CMA), empowered by the DMCCA, has issued draft guidance to help businesses comply with the total price provisions [3]. Key aspects of the guidance include:

Mandatory charges: Fees relating to additional services that cannot be avoided, delivery charges, local taxes, and joining fees must be included in the total price shown to consumers immediately [3].
Progressive disclosure: If the total price cannot be calculated immediately due to variable factors, traders must provide all information needed for the consumer to calculate the total price progressively [3].
Structuring the sales process: Traders are encouraged to collect key customer information upfront to enable an accurate, total price calculation [3].
Price transparency: Traders must avoid hidden or "drip" charges and segmented pricing that obscures the total cost [4]. The full price consumers must pay should be stated at or near the first purchase point [4].

The CMA has also suggested practical solutions for online retailers, such as a prominent "floating basket" that updates in real-time to keep the total price visible to the consumer [5]. Additionally, a dynamic "add to basket" button on the product page that shows the cost of adding an item to the basket is suggested [5].

The guidance also provides examples of prohibited "drip pricing" practices and ways to ensure compliance when presenting price information [6]. If there are different delivery options, the minimum delivery price must be included in the headline price [7].

The CMA is seeking suggestions from businesses for simple, alternative, practical solutions to achieve compliance, particularly in relation to online transactions [8]. The consultation on the draft guidance is open until 8 September [8].

In the telecoms sector, the DMCCA's total price provisions are particularly important as Ofcom's General Conditions and associated guidance on price information both refer to the provision of monthly pricing for ease of consumer comparison [9]. The CMA's altered position allows periodic pricing to be shown, ensuring consistency between the general application of the DMCCA and the specific rules that apply to communications services [9].

For minimum or fixed-term contracts, the total price can be displayed as either the total price for each period of the contract or the cumulative price that the consumer will necessarily incur over the entire minimum period [9]. Delivery charges will be optional if the consumer can purchase and receive the product without having to pay for delivery [10]. However, if traders choose to waive or reduce the delivery charge if the consumer spends a certain amount, the full delivery charge must be included in the total price until the consumer's basket reaches the price that qualifies for a lower or free delivery charge [10].

In conclusion, the DMCCA and CMA guidance require businesses to present all mandatory charges upfront as a total price, disallowing any practice that withholds mandatory fees until later purchase stages to ensure fair and transparent consumer pricing [1][2][3][4]. Businesses are encouraged to respond to the CMA's consultation on the draft guidance by 8 September to ensure compliance with the new regulations.

[1] Digital Markets Competition and Consumers Act (DMCCA) - gov.uk [2] Drip pricing - Competition and Markets Authority (CMA) - gov.uk [3] CMA draft guidance on price transparency provisions of the DMCCA - gov.uk [4] CMA's consultation on draft guidance on price transparency provisions of the DMCCA - gov.uk [5] CMA's suggestions for online retailers - gov.uk [6] Examples of prohibited "drip pricing" practices - gov.uk [7] Minimum delivery price in headline price - gov.uk [8] CMA seeks suggestions from businesses - gov.uk [9] Telecoms sector and the DMCCA - gov.uk [10] Delivery charges under the DMCCA - gov.uk

Businesses, as mandated by the Digital Markets Competition and Consumers Act (DMCCA), need to clearly display the total price of products or services upfront, including mandatory charges like fees for additional services, delivery costs, local taxes, and joining fees, to promote transparency and avoid misleading pricing practices such as 'drip pricing.'
In the telecoms sector, the DMCCA's total price provisions apply particularly seriously, as monthly pricing must be provided for consumer comparison. For minimum or fixed-term contracts, the telecoms companies are to either display the total price for each period of the contract or the cumulative price for the entire minimum period, ensuring full price transparency.

UK's Competition and Markets Authority (CMA) issues additional advice on the 'drip pricing' regulations outlined in the Digital Markets, Competition, and Consumer Act (DMCCA)