CMA’s consultation on the price transparency guidance - Which? response

Which? welcomes this opportunity to respond to the CMA’s consultation on the draft guidance for the price transparency provisions of the Digital Markets, Competition and Consumers Act 2024 (DMCC Act). The Guidance is a critical tool to ensure that the Act delivers a high level of business compliance and therefore improved consumer protection. Consumers currently experience drip and partition pricing across a range of different sectors and there are many examples of pricing practices that do not comply with this draft guidance despite the new provisions coming into effect in April. It is therefore important that the guidance is supported by effective enforcement actions, including for the travel, hospitality and retail sectors, as well as in the case of online marketplaces. 

We are supportive of this guidance as we believe it is clear, well-structured and helpful in illustrating how the DMCC Act provisions should apply to a range of commercial practices. However, given the prevalence of such practices in recent years, we would like this guidance to incorporate a number of additional considerations that we believe are essential for ensuring clarity, consistency, and effective enforcement of the rules around drip pricing, partition pricing and price transparency more generally. Based on our research and observations, we have identified several areas where further detail, clarification, and illustrative examples would significantly enhance the usefulness of the guidance for both businesses and enforcement bodies as follows: 

• A broader range of examples to support the definition of ‘an invitation to purchase’ which capture the complexities and evolving mis-practices in the market, including for services, new business models and multi-party supply chains.
• Examples from a wider range of sectors, such as those relevant to the travel sector, one example of where we have found disproportionate levels of consumer detriment experienced.
• Examples and additional flow charts which aid relevant agencies with the enforcement of drip pricing practices.
• Examples which will help to enhance cross-border price transparency and international business compliance.
• Reference to the CMA’s guidance on how the invitation to purchase provisions and wider price transparency provisions apply in the case of dynamic pricing to ensure that advice is clear and joined up. 

This proactive approach will help ensure that consumer protections concerning price transparency remain effective and relevant, safeguarding individuals from emerging threats. It will also provide businesses with clearer expectations and guidelines, promoting fair competition and trust in the marketplace. Additionally, this comprehensive guidance would serve as a valuable guide for enforcers, offering them a reliable reference to uphold consumer rights. It would also act as a strong deterrent against illegal business practices, reinforcing the importance of compliance and ethical conduct in the digital economy. We urge the CMA to consider these additions to make the guidance as comprehensive and future-proof as possible.