Friday, 18 September 2009

Probe into unfair internet pricing

Link to the article: Channel 4 News

By Channel 4 News

The Office of Fair Trading is looking into internet advertising, with so-called "drip pricing" likely to come under the spotlight.

It is a story familiar to many internet shoppers - you spot a bargain price, but when you go to the website, the extra charges pile up, and before you know it, a price which is "too good to be true" turns out to be just that.

As a test Channel 4 News tried to book a flight to Geneva next month on a budget airline website. The initial price was a tempting £37. But when you add £14.50 for priority boarding, £16 for a hold bag, and £6.95 for paying by credit card, the price ended up at over £90.

Now the Office of Fair Trading is investigating internet advertising and additional costs.

Matthew Bath from the consumer group, Which, told Channel 4 News:

"Where these companies fall down in our eyes is that they are not being transparent and clear certainly with these kinds of unavoidable charges.

"Paying by credit card offers consumers a lot of protection. But often extra charges for credit card payments are tacked on late in the game. Those charges should be right up there at the beginning, at the advertising stage."