This new consumer protection law aims to enhance transparency and protect consumers from the estimated £2.2 billion annual costs associated with hidden fees.

The law specifically targets unfair contract terms, misleading information, and aggressive sales practices, ensuring that consumers are not misled during their purchasing decisions.

The crackdown on fake reviews is also a key component of the law, responding to studies indicating that approximately 10% of online reviews may be fraudulent.

The legislation requires that all mandatory fees, such as booking and administration charges, be included in the advertised price of products to address the issue of 'dripped pricing'.

As of April 6, 2025, the United Kingdom has enacted a significant ban on fake reviews and hidden fees for online products under the Digital Markets, Competition, and Consumer Act 2024.

Affected services include event tickets, cinema admissions, gym memberships, food deliveries, and travel-related purchases, all of which must now display mandatory fees upfront.

Businesses found in violation of these regulations may face significant penalties from the Competition and Markets Authority (CMA), which can impose fines of up to 10% of a company’s annual global turnover.

To combat this issue, businesses are prohibited from using fake reviews to artificially inflate their ratings, and online platforms must actively moderate reviews.

Justin Madders, the UK's Minister for Employment Rights, emphasized that the ban aims to eliminate the surprise of unexpected fees at checkout, empowering consumers and promoting fairness.

Madders stated that these reforms not only empower consumers but also contribute to a fairer market environment, ultimately fostering economic stability.

This legislative change follows a growing consumer demand for ethical practices in the digital marketplace, reflecting increased awareness of deceptive pricing strategies.

In the first year after implementation, the CMA will focus on serious violations to ensure compliance while assisting businesses in understanding the new regulations.