Hidden fees and drip pricing

What drip pricing is, when hidden fees break consumer law and what you can do if the price you see is not the price you are asked to pay.

Last updated on 6 November 2026

In this guide…

What you need to know about hidden fees and drip pricing 

  • Hidden mandatory fees are illegal. Businesses must not hide fees, taxes or charges until later in the purchase process.
  • The first price you see should normally be the total price you pay – businesses must include all mandatory charges up front, no matter where or how they advertise.
  • This applies at every stage of the purchase process, from early-stage advertising through to the final checkout.
  • Optional extras are different. Businesses can charge for optional extras, but they must be clearly presented and should not be added without your active agreement.
  • Businesses that break the law can be fined up to 10% of their global turnover or £300,000, whichever is greater – and can be ordered to compensate affected customers.
  • If you have been misled about the price of something, you have the right to complain.
  • The Competition and Markets Authority (CMA) has stronger direct enforcement powers  under the Digital Markets, Competition and Consumers Act 2024. Trading Standards may also be involved in enforcing consumer protection law.

What is drip pricing?

Drip pricing is when a business advertises a headline price and then adds extra charges later in the purchase process, often only at the checkout.

The biggest concern is where those charges are unavoidable – for example, a compulsory booking fee, service charge, tax or mandatory delivery charge.

Example: You spot an advert for a gig at £20 per ticket. But when you get to the checkout, a compulsory £5 booking fee is added. That fee should normally have been included in the advertised price from the start – for example, shown as “from £25, including mandatory booking fee.” Drip pricing can make it harder to compare prices properly. You think you are comparing one deal with another, but one price may be missing charges that only appear later.

Other unfair online pricing practices

Drip pricing is not the only unfair online practice the CMA is investigating. Under the Digital Markets, Competition and Consumers Act 2024, the CMA has opened investigations into a number of businesses suspected of breaking consumer law through:

  • Hidden mandatory fees – charges that are unavoidable but not shown upfront 
  • Misleading time-limited offers – countdown timers or “limited availability” messages that create false urgency to pressure you into buying quickly
  • Automatically opting consumers into optional charges – where additional charges are pre-ticked or added without your active consent, requiring you to opt out rather than opt in

Government research carried out before the CMA’s strengthened powers came into force found that drip pricing was common online. The 2023 research looked at 525 online providers and found that 46% use drip pricing, excluding delivery fees. It estimated that dripped fees could be causing consumers to spend between £525 million and £3.5 billion extra online each year. 

Since the CMA’s strengthened powers came into force, it has taken action in cases involving AA Driving School and BSM Driving School, Marks Electrical and  StubHub UK, ordering refunds for affected customers as well as issuing fines. 

Other CMA work has included reviews or investigations into online pricing practices involving businesses such as Viagogo, Wayfair and Appliances Direct. And it is currently investigating whether Trainline, Virgin Atlantic and RED driving school showed customers the total price upfront when booking tickets, holidays and driving lessons.

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What the law says businesses must do

Prices must be clear, complete and accurate. Consumers should have the information they need to make informed decisions, shop around and compare the prices of competing products.

Show the total price up front

Whenever a business tells you about a product and its price – in an advert, on their website, in an email or on social media – this is an “invitation to purchase.” At this point, they must show you the total price clearly and in a way you are likely to see it. If they do not, the information will be treated as having been omitted.

This applies to adverts, websites, emails, social media posts, price labels, online baskets and checkout pages.

Include all the mandatory charges
  • Any charge you cannot avoid paying must be included in the total price. This includes: fees such as delivery or booking fees, service charges admin fees and mandatory delivery charges
  • taxes such as VAT
  • any other unavoidable payment you must make to buy or receive the product

Showing these charges separately or saving them until later is not enough to comply with the law.

Be clear when the total price cannot be calculated

Sometimes a total price cannot be given upfront – for example, if the price depends on your specific requirements. In that case, the business must give you the information you need to work out the total price yourself. This information must be as prominent as the part of the price they can calculate – in practice, it should normally be set out next to it.

Example: A carpenter sells made-to-measure flooring. His website prominently shows the cost from £25 per square metre, with a flat fitting fee of £200 shown directly below. This gives customers everything they need to work out the total cost.

Optional charges

Optional charges – such as next-day delivery – do not have to be included in the total price, but they must still be shown in the advertisement.

You should not be charged for optional extras unless you actively choose them.

How specific charges should be shown

Delivery charges

Mandatory delivery charges must be included in the total price shown in advertising. If the charge varies – for example based on your location – and cannot be calculated upfront, the business must include enough information for you to work it out yourself, displayed with the same prominence as the headline price.

If you must choose between delivery options, the cheapest mandatory option should be included in the total price until you choose a different one.

Optional delivery charges – such as next-day delivery – do not have to be part of the total price but must still be shown in the advertisement.

Per-transactional charges

A per-transaction charge is a mandatory charge that applies to a purchase or order rather than to an individual product – for example, a one-off flat booking fee. These must be included in the total price even in early-stage advertising. If a business uses a “from” price, it must include any mandatory per-transaction charges.

Periodic pricing

Some products require you to make regular payments in return for ongoing services – such as subscriptions, gym memberships and broadband contracts.

For a rolling monthly contract that you can cancel at any time, the business must show the total price you will pay each month, including all mandatory charges.

For a contract with a minimum term – for example, 12 months – the business must show either:

  • the cumulative price for the whole contract
  • the price payable each month along with the number of months that price applies for

For example, a gym could offer a membership as £70 per month for 12 months plus a £30 joining fee, showing a total annual membership cost of £870.

Local charges and taxes

Mandatory local charges – such as resort fees – and taxes must always be included in the total price shown in advertising. If part of the total is to be paid locally, the business must give you clear “pay now” and “pay locally” amounts in addition to the overall total.

If part of the charge is to be paid locally in a foreign currency, the business must either convert the charge to pounds and include it in the total price or provide the total in the foreign currency. They should also tell you what exchange rate was used.

How to complain

1. Complain to the business

Contact the business directly and explain that the total price was not made clear upfront. Put your complaint in writing and keep a copy. Include screenshots of: the original advertised price, the checkout page, the extra charge and any terms or small print.

2. Report wider concerns 

If you think a business is misleading consumers about prices, report it to the appropriate consumer advice service:

You can also report a problem to the CMA if you think it affects more than just you. The CMA will not usually resolve your individual complaint, but reports help it spot patterns and decide where to take action.

3. Check whether the CMA has ordered refunds

In some cases, the CMA can order businesses to refund or compensate affected customers. Where that happens, the businesses will usually contact eligible customers directly.

If you’ve been charged more than the advertised price

If the price you paid is higher than the price that was advertised, your rights depend on how and whether a contract has already been formed.

Shopping online 

Your rights depend on whether a contract exists between you and the seller. Depending on the company’s terms and conditions, a contract is formed either when you pay or when the item is dispatched. 

If a contract exists, the company cannot usually cancel your order even if they realise they sold at the wrong price – unless it was a genuine mistake you should have noticed. If you do not yet have a contract, the seller can cancel your order.

In a shop 

If you have not yet paid, you do not have a legal right to buy the item at the lower advertised price – though you can ask the seller to honour it. 

If you have already paid more than the advertised price, you can return the item and ask for a refund, or ask the seller to refund you the difference.

If you think a business is deliberately misleading people about prices, you can report them to Trading Standards via Citizens Advice.

Tips for successful claims

  • Compare the final checkout price with the price that first attracted you
  • Look out for words like booking fee, service charge, admin fee, processing fee, facility fee, delivery fee or resort fee
  • Ask whether a charge is genuinely optional. If you have to pay it, it should normally be included upfront.
  • Watch out for pre-ticked boxes or extras added automatically
  • Take screenshots if the price changes during checkout
  • Pay by credit or debit card where possible – if something goes wrong, your bank may be able to help you get your money back through chargeback. Credit card purchases may also have extra protection under Section 75 if the cash price is over £100 and the legal conditions are met.

Frequently Asked Questions about drip pricing

Is drip pricing illegal in the UK?

Hidden mandatory fees are illegal. It is illegal to hide additional fees, taxes or charges that the customer has to pay until later in the purchase process. 

Businesses must show the total price, including all mandatory charges, upfront. Businesses that break the law can be fined and ordered to compensate customers. 

Optional extra can be charged separately, but they must be clearly presented and should not be added without active agreement.

Does this apply to online purchases only?

No. The rules apply to any invitation to purchase – whether that is an online advert, a TV commercial, a newspaper advert, a price tag in a shop or any other way a business communicates a price to you. 

What if the charge is paid to a third party such as a broker or intermediary?

This does not exempt it. Businesses can still require you to make part of the payment to a different trader – but the total price shown upfront must reflect this. 

Showing the total price upfront does not stop a business from taking payment in instalments or charging a pro-rata price.

What about optional extras? 

Optional charges – things you genuinely do not have to pay – do not need to be included in the total price. However, they must still be shown in the advertisement. You should not be charged for optional extras unless you actively choose them.

Can a business show a “from” price?

Yes, as long as it includes all applicable mandatory charges and does not mislead you about what is covered. For example, a holiday advertised “from £X” based on a 7-night stay for 2 people between specific dates is acceptable provided the price includes all unavoidable charges. 

But a “from” price should not be used to make a deal look cheaper than it really is. It must include any mandatory charges that apply to the advertised product, or give you clear and prominent information to work out the total price where the final amount depends on your choices.

What if only part of the price can be calculated in advance?

If the full price cannot be worked out in advance – for example because it depends on your specific requirements – the business must give you the information needed to calculate the total yourself, displayed as prominently as the headline price. 

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