/

Drip pricing

GLOSSARY

Pricing

Drip pricing

Drip pricing

Drip pricing

THE SHORT VERSION

Drip pricing is showing a headline price and then adding compulsory charges later in the booking process. Since 6 April 2025, the Digital Markets, Competition and Consumers Act 2024 has made it unlawful in itself for UK consumer sales. Before then it could already break consumer law if it misled customers.

Drip pricing is showing a headline price and then adding compulsory charges later in the booking process. Since 6 April 2025, the Digital Markets, Competition and Consumers Act 2024 has made it unlawful in itself for UK consumer sales. Before then it could already break consumer law if it misled customers.

The law requires an invitation to purchase, such as an advert, search result, brochure price or website listing, to show the total price, including any fees, taxes or other charges the customer will necessarily have to pay. Leaving them out is unfair in itself, whether or not it changes the customer’s decision. The Competition and Markets Authority (CMA) can now fine businesses directly, up to £300,000 or 10% of turnover if that is higher, and order refunds.

What the CMA’s guidance says

  • Booking and administration fees, however they are described, are mandatory charges.

  • Local taxes, resort fees and other charges payable on arrival should normally be included in the headline price too. Where they are paid in another currency, the total can be shown in that currency or in pounds at a live or reasonable indicative exchange rate.

  • Where the total cannot be calculated yet, an indicative price on stated assumptions is allowed, such as a “from” price per person based on two adults sharing.

What is still allowed

  • Genuinely optional extras, such as seat selection or extra bags, can be priced separately. Calling a charge an extra does not make it optional if the customer cannot buy without it.

  • The rules govern how prices are shown, not how payment is taken, so deposits, instalments and paying part of the price locally are still allowed.

Worth knowing

The CMA’s first fine for breaking consumer law under its new powers, in April 2026, concerned a mandatory £3 booking fee left out of the upfront price. Surcharges for paying by consumer card are banned separately, under the rules on card surcharges.

Sources

The official pages behind this explanation. This is general information, not legal advice, and rules change, so check the latest version.