CMA consults on draft price transparency guidance under the DMCCA

The question

What practical guidance is given by the CMA in its new draft guidance on price transparency under the Digital Markets, Competition and Consumers Act 2024 (DMCCA)?

The key takeaway

The CMA’s hotly anticipated draft guidance on price transparency has finally been published for consultation. It clarifies the rules in relation to traders presenting the total price of a product upfront in every invitation to purchase and confirms the CMA's approach to specific types of charges such as per-transaction fees, delivery charges and subscriptions.

The background

As reported in our Spring 2025 edition of Snapshots, the DMCCA came into force on 6 April 2025, including the specific provisions prohibiting unfair commercial practices. These provisions prohibit a wide range of practices which are deemed to be unfair to consumers. "Drip pricing" (when a consumer is shown an initial price upfront for a product/service but incurs additional charges later in the transaction process) is one such commercial practice which will be considered to be unfair regardless of its likely impact on average consumers. In broad terms, the DMCCA's approach to price transparency is that prices should not be misleading and, where possible, traders should present consumers with the total price of the product at the outset, including all mandatory charges.

Given the large number of consultation responses on price transparency (and drip pricing in particular) received before the DMCCA came into force, the CMA purposely omitted guidance on drip pricing from its main guidance on unfair commercial practices, with a view to consulting separately on this subject. This came as a result of push-back from businesses which pointed out circumstances where, for example, delivery fees cannot genuinely be calculated in advance (eg where fees depend on the location of the consumer). In response, the CMA confirmed that only clear and obvious breaches of the drip pricing provisions would be enforced ahead of detailed final guidance being published in the Autumn.

The development

On 3 July 2025, the CMA launched its consultation on draft guidance on the price transparency provisions of the DMCCA. Interested parties have until 8 September 2025 to contribute to the consultation.

The key takeaways from the CMA's draft guidance are:

• Defining an 'invitation to purchase': an invitation to purchase is when a trader gives information to consumers about the characteristics of a product and its price, allowing the consumer to make a decision as to whether to purchase the product (eg an ad). Notably, the draft guidance confirms that an invitation to purchase does not need to provide the consumer with the opportunity to buy the product, while it can also exist when only minimal product information has been provided – including so called "early-stage advertising"

• Pricing information to include in an invitation to purchase: the draft guidance builds upon the requirement in the DMCCA that the price of a product presented in an invitation to purchase must not mislead consumers. A price is likely to be misleading if it is not realistic, meaningful and attainable, and not set out clearly and in a timely way. In terms of the specific pricing information that must be included, the key point is that the total price of the product must be displayed in the invitation to purchase (including any mandatory charges).

• Providing the total price: the draft guidance details the types of mandatory charges that should be included in the total price of a product, including purchase taxes such as VAT, booking fees and delivery charges which cannot be avoided by the consumer. In relation to taxes, these only have to be included in the total price if they form part of the price of the product. However, it is not always possible for traders to calculate the total price of a product upfront, particularly where the consumer has not yet provided their requirements (eg the required weight or length of a bespoke product). In such a situation, a trader must give the consumer sufficient information to be able to calculate the total price themselves, such as via a price list. Moreover, consumers should be provided with material pricing information in a "full and timely" manner irrespective of how the price is communicated.

The draft guidance also considers how the DMCCA's price transparency requirements apply to specific types of charges:

• 'Per-transaction' charges: these are mandatory charges which are linked to the purchase rather than the product (eg booking fees). The draft guidance makes clear that these should always be included in an invitation to purchase and, where possible, included in the total price. For example, in the case of a theatre website offering £20 tickets where each transaction has an online booking fee of £2, the price shown in an invitation to purchase should be £22 for the ticket as the £2 booking fee is applied to each booking (and a person buying one ticket will be charged £22 for that ticket).

• Delivery charges: the total price of a product must include any mandatory delivery charges at the invitation to purchase stage (i.e. before the checkout in the case of an online purchase). This does not apply to products where there is a genuinely free "click-and-collect" option as in these circumstances the consumer has an alternative to paying for delivery (i.e. the delivery charge is not mandatory). However, where a consumer will realistically need to have their order delivered, the delivery fee needs to be included in the headline price (and where there are multiple paid delivery options, the cheapest delivery option should be included in that headline price). Where a mandatory delivery charge cannot reasonably be calculated in advance, the trader must indicate that delivery charges are payable along with how those charges will be calculated.

• Local charges and taxes: the unfair commercial practices provisions of the DMCCA also apply to 'tourist taxes' and other such charges in the same way as other mandatory charges, and therefore should be included in the headline total price presented to consumers. If the charges are paid locally to a third party and in a foreign currency, the trader must still calculate the approximate charge using current exchange rates and include this in the total price.

• Periodic pricing: the draft guidance confirms that periodic payments for services on a rolling contract or minimum / fixed term contract basis (eg gym memberships) are also subject to price transparency requirements. In respect of rolling contracts, traders must present the total price as the price the consumer has to pay for each period (eg £50 per month) inclusive of all mandatory charges for that period. For minimum / fixed-term contracts, the trader may either present the total price as the total monthly price along with a statement regarding the number of months the customer is committed to paying that price for, or the total cumulative price over the entire length of the contract/minimum commitment.

Why is this important?

The CMA’s draft guidance is an attempt by the CMA to clarify traders’ obligations under the DMCCA’s price transparency provisions and reduce uncertainty around drip pricing enforcement. However, whether additional changes will be made to the guidance following the consultation period remains to be seen. What is clear is that the CMA are taking a hard line on the key component of the price transparency provisions: that the total price of a product (including all mandatory charges) should be displayed in every invitation to purchase wherever possible. With this in mind, businesses should be taking steps to adapt their marketing and checkout flows to display comprehensive, all-in pricing, covering in-scope booking fees, delivery fees and other mandatory charges to mitigate the risk of enforcement action. Early alignment (subject to any changes to the draft guidance) will help ensure compliance, safeguard consumer trust and avoid potential fines or corrective measures from the CMA.

Any practical tips?

Businesses should audit their invitation to purchase processes to verify that all mandatory charges are clearly included or explained and, subject to any changes in the final guidance, update website templates, checkout flows and marketing copy to display total upfront pricing. Where total pricing cannot be pre-calculated, traders must provide transparent calculation methods or indicative ‘from’ prices. Businesses are also encouraged to review the CMA’s draft guidance and submit feedback by 8 September 2025, helping to shape the final guidance to ensure that it is both practical and workable.