Major change to the best way Brits guide tickets and store on-line in transfer that may save customers £2.2bn yearly

A law banning fake reviews and hidden fees which trick online shoppers out of £2.2billion per year will come into force today.

Sites charging extra ‘administration fees’ or ‘ticket booking fees’ will now have to declare them in the full price of a purchase rather than sneaking them in once customers are ready to pay.

The ban, which comes under the Digital Markets, Competition and Consumers Bill passed under the previous UK government, will affect travel agencies, ticketing sites and food delivery apps.

However, it will not impact any mandatory extra costs such as specific airline seats and baggage upgrades for flights.

The change also means online retailers will have to prevent and remove fake consumer reviews from their websites in a crackdown to stop businesses from garnering a false reputation.

With consumers spending £2.2billion on hidden fees every year, according to the Department for Business and Trade, the move is set to give the public more ‘control over their cash’.

Justin Madders, Minister for Competition and Markets, said: ‘From today consumers can confidently make purchases knowing they are protected against fake reviews and dripped pricing.

‘These changes will give consumers more power and control over their hard-earned cash, as well as help to establish a level playing field by deterring bad actors that undercut compliant businesses.’

Research has revealed the hidden charges can reach as high as 25 per cent of the original price, with just under half of online retailers putting mandatory extra fees in their pricing in some form.

Of the 45 per cent who include the charges known as ‘dripped pricing’, 21 per cent of these come from the travel and hospitality sectors, while retail only make up around 3 per cent. 

The move to clamp down on the sneaky fees comes after many Oasis fans were left furious last year when Ticketmaster’s ‘dynamic pricing’ ruined their attempts to buy tickets for the rock band’s dramatic reunion this summer.

An estimated 14 million fans spent one Saturday last August desperately trying to get their hands on tickets to see brothers Noel and Liam Gallagher reunite on stage for a mammoth tour around the UK and Ireland.

But eager fans were left raging after the price of standing tickets went up from £150 face value to £355 within hours due to the huge demand.

Fans described Ticketmaster’s dynamic pricing as an ‘absolute disgrace’ and lashed out at the company’s bosses which include CEO Michael Rapino, UK managing director Andrew Parsons, president Mark Yovich and COO Michael Wichser.

The ‘dynamic pricing’ system, which Ticketmaster introduced in 2022, works by altering the prices of tickets based on demand – similar to an Uber journey or seats on flights.

When face value tickets have sold out, ticket providers release more at a higher price, agreed in advance with the artist’s manager and promoter, but not to the general public.

Crucially, Oasis – often hailed as working class heroes – could have rejected dynamic pricing to keep the cost lower for fans. 

Singer Tom Grennan said in 2022 that he had ‘dismissed all VIP and platinum ticket options’ due to the cost-of-living crisis.

Ticketmaster say the hated practice is ‘driven by supply and demand’ and that the extra money from the inflated prices for Oasis tickets will go to the band.

Dynamic pricing works on the logic that by increasing prices on official websites, touts will be scared off and the artists will be able to keep the extra profit. 

The ‘In-Demand’ tickets are often called ‘platinum tickets’, but consumers gain no added benefit such as VIP access.

Mr Rapino, the CEO of Live Nation Entertainment which owns Ticketmaster, came under fire when the Oasis tickets went on sale. 

One user tweeted: ‘You are everything that’s wrong with the live events industry.’

Another wrote: ‘Michael Ticketmaster are a joke and you’re a money grabbing scumbag. Demand pricing is Ticketmaster being the touts themselves. 1000s of UK fans writing to their MP. See you in court.’

Mr Rapino, who lives in LA with his wife and three children, is known for his ‘rock-star pay deals’ and was paid $139million in 2022, making him one of the highest-paid bosses in corporate America.

Others called on Mr Parsons to explain himself in an interview, adding: ‘Dynamic ticket pricing?? Absolute racket by his company!’