TV and radio star Alexander Armstrong has been hired by the Competition and Markets Authority to encourage businesses to comply with its new pricing rules.
Companies that fail to include all mandatory charges in their headline prices, including taxes and fees paid in resorts, could be fined up to £300,000 or 10% of their annual turnover from this week.
ABTA issued a warning earlier this month that the new rules apply to agents as well as tour operators and other suppliers.
Alexander, who is fronting the CMA’s new ‘3 Step Pricing Check’ campaign, said: “Nobody likes hidden fees – we want the price we see to be the price we pay.
“The CMA is doing important work in this area – so if you’re a business owner, make sure you pass the CMA’s 3 Step Pricing Check.
“Clear prices just make life easier.”
However, agents have argued that the new rules might actually confuse clients as the headline price must include fees, such as tourist taxes, that can only be paid overseas, in local currencies.
Posting in Travel Gossip’s Facebook group, one agent said: “We’re going to get clients asking if they can pay that charge upfront if it’s included in the overall price,” and another said: “Calculating these costs is impossible, what do we do if the exchange rate changes and we’ve told the client the cost is less than they end up paying?”
The CMA said its campaign gives ‘time-poor’ businesses a way to check they’re compliant by simplifying the rules into three actionable steps when pricing their products.
“The checks are designed to support businesses that want to do the right thing by making upfront pricing the new normal and building customer trust,” it said. “The first price customers see should be the price they pay.”
The strengthened rules around price transparency and consumer protection were introduced under the Digital Markets, Competition and Consumers Act 2024, but they are only being enforced by the CMA from the end of this month.
Emma Cochrane, Acting Executive Director of Consumer Protection and Enforcement at the CMA, said: “We’ve shown we’re serious about supporting businesses and this three-step pricing check makes it even easier for businesses to understand their legal responsibilities as they navigate the new rules.”
The CMA has published guidance on price transparency explaining how to present prices clearly. It sets out what traders should and shouldn’t do when displaying prices and offers practical examples covering delivery charges, administration and booking costs, and periodic payments, so customers know exactly what they are paying for.
ABTA has also issued guidance for members, which can be found on its website.
