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Press release GOVERNMENT CLAMPDOWN ON FAKE REVIEWS AND HIDDEN FEES TO HELP CUSTOMERS CUT THE COSTS OF LIVING A clampdown on fake reviews and hidden fees has been announced by the Government
which will help customers cut the costs of living. This was published under the 2022 to 2024 Sunak Conservative government * Series of new business measures proposed to boost transparency
and help consumers with cost of living as they shop. * Fake reviews, hidden fees and confusing labels all targeted in new consultations, aimed at improving services for customers. * New
research found three quarters of transport sector have hidden fees in their products, highlighting need for clearer and fairer customer journey. Consumers are at the heart of new
consultations launched later today as the Government commits to improving transparency, fairness and clarity for customers as they shop – including a crackdown on hidden fees in products
ranging from train tickets to food deliveries. Commissioned by the Prime Minister in June as part of the Government’s ongoing work to support people with the cost of living, government
research published today will inform the consultation to ensure we root out where ‘drip pricing’ harms consumers most. The research has confirmed so-called ‘drip pricing’ – where the price
paid at checkout is higher than originally advertised due to extra, but necessary, fees – is widespread, and occurs in more than half of providers in the entertainment (54 percent) and
hospitality (56 percent) industry, and almost three quarters across transport and communication (72 percent) sectors. In total, this costs UK consumers £1.6 billion online each year.
MINISTER FOR ENTERPRISE, MARKETS AND SMALL BUSINESS KEVIN HOLLINRAKE SAID: > Today’s measures will help people keep hold of their hard-earned > cash and ensure they have the clearest
and most accurate information > upfront before they make a purchase. > > From the shelves of supermarkets to digital trolleys, modern-day > shopping provides a great wealth of
choice. But fake reviews and > hidden fees can make those choices increasingly confusing and leaves > customers unsure about what product is right for them. > > We’ll be
listening to industry to ensure these new regulations > work for businesses too and don’t generate unnecessary burdens, > while at the same time providing a crucial safety net for
consumers > and their cash. Another consultation launching later today seeks views on measures to stop fake reviews, as initially announced in the Digital Markets, Competition and
Consumers Bill (DMCC). The ambition is to ensure that consumers and traders continue to benefit from reviews that represent a genuine experience, while stamping out the purchase and sales of
fake reviews, and ensuring firms take an appropriate level of responsibility for reviews on their websites. The final consultation launching later today looks at how to simplify labelling
on goods. Following a review by the Competition and Markets Authority (CMA), the Department for Business and Trade has put forward proposals to reform the Price Marking Order (PMO). The PMO
requires traders to display the final selling price and, where appropriate the final unit price (e.g. price per litre/kilogram) of products in a clear way. These changes will ensure unit
pricing is consistently applied, including to promotions and special offers, helping consumers compare products easily and identify what items represent the best value to them. SARAH
CARDELL, CEO OF THE COMPETITION AND MARKETS AUTHORITY SAID: > This consultation follows recommendations from the CMA to government > to tighten the rules on how everyday items are
priced on supermarket > shelves as well as our work tackling fake reviews online. > > We’re very pleased to see this getting underway and it’s an > important step toward clearer
rules and greater transparency for > people when shopping around for goods and services. > > We’ll feed into this consultation and continue our work in these > areas, which
we’ll be updating on later this year. ROCIO CONCHA, WHICH? DIRECTOR OF POLICY AND ADVOCACY SAID: > The measures being consulted on will address longstanding concerns > to help
consumers make better informed decisions - whether shopping > for products online or buying a weekly shop in the supermarket. > Our research shows that fake reviews jeopardise consumer
trust and > are harmful to honest businesses that don’t purchase or > incentivise people to post positive reviews. > > Customers also need clear pricing upfront when
considering a product > or service and should not find themselves having to pay for > charges hidden until the checkout like mandatory booking fees. > Supermarkets also need to make
it easy to compare the unit price of > everyday items to help consumers make informed choices during the > cost-of-living crisis. GRAHAM WYNN, ASSISTANT DIRECTOR FOR CONSUMER POLICY
AT THE BRITISH RETAIL CONSORTIUM SAID: > The BRC fully supports practical, proportionate consumer protection > measures and the level playing field they bring. It is important to >
keep the rules up to date to reflect changes in buying and selling > methods. We look forward to engaging constructively on the > proposals. The Government has already acted to reduce
burdens for businesses while ensuring high quality standards for consumers. In August, we announced the extension of the use of CE marking, while also launching a major review into fire
safety regulations alongside product safety. Meanwhile the DMCC Bill, which will look at powers to ban fake reviews, will clamp down on unfair behaviour by a small number of the most
powerful tech companies as well as tackling issues such as subscription traps – all with the aims of saving consumers money and boosting competition. BACKGROUND: * The consultation will go
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