As we near Black Friday and the Christmas shopping rush, the Competition and Markets Authority (CMA) has issued an open letter reminding traders to make prices, including delivery fees, clear to customers upfront.
What does this mean for delivery fees?
Under the Digital Markets, Competition and Consumers Act 2024 (DMCC Act), if a customer has to pay a delivery charge to buy a product, the trader must show the total price including the minimum mandatory delivery charge to the customer throughout the sales process.
The CMA acknowledges that many businesses have taken steps to comply with the DMCC Act since it came into force. However, it is still concerned that some businesses are not complying when they present delivery charges to consumers. Having published detailed guidance for businesses on price transparency requirements in November 2025, the CMA may take enforcement action if it sees ongoing non-compliance, but emphasises that it will do so in a fair and proportionate manner.
What does the law require?
The DMCC Act requires that if the price of a product is being provided to a consumer (an 'invitation to purchase') that price must be the total price, including mandatory delivery or collection fees. The total price must also include any other unavoidable fees, taxes and charges. The total price must be provided at every stage of the purchase process where a price is given, including advertising, product pages, carts and baskets, checkout and payment pages.
The CMA's guidance covers a wide range of situations and provides examples of approaches different types of businesses, and businesses with different types of delivery fees, can take to make sure that they are compliant with the law. The guidance includes illustrations of various possible approaches.
What information must be provided when there is a flat delivery charge that applies to a customer's shopping basket?
Where an e-commerce website or app allows customers to purchase multiple products together (for example, an online clothing retailer), it is often the case that a single delivery charge applies to the order regardless of how many items are purchased. In those situations, the retailer must still provide the customer with the total price of the products, including any mandatory delivery or collection fees, throughout the shopping process. The requirement to provide the total price does not prevent the trader presenting other information such as a breakdown of how the price is calculated or the cost of the delivery fee that is included within it. Retailers could, for example, automatically display the price for a product both including and excluding delivery.
What information must be provided when delivery charges are optional?
Where a retailer has optional delivery charges, the retailer must tell customers clearly throughout the process that these charges apply. If the amount cannot reasonably be calculated in advance, retailers must explain that an additional charge may be payable. Customers should not have to search through separate pages, hidden menus or expandable sections to find this information.
What information do online marketplaces, comparison sites and search engines need to provide when they are showing prices from multiple different retailers?
The price transparency requirements also apply. When, for example, an online marketplace displays a list of items sold by different traders, each of which can be purchased individually and has its own delivery charge, the price of delivery should be included in the total price of each product. When it comes to other types of retail sites, traders can also present other pricing information to the consumer, such as the base cost (exclusive of delivery), provided that the total price is presented in a clear and timely manner and in a way that the consumer is likely to see it.
What is the CMA looking out for?
The CMA is looking for the following examples of non-compliant practices:
- displaying a product price without including a mandatory delivery charge in the total price;
- failing to include applicable mandatory delivery charges within basket totals or order summaries;
- failing to provide information about optional delivery fees or placing that information behind links, separate pages, pop-out pages, expandable sections or drop-down menus; and
- failing to provide information about delivery charges until late in the checkout stage.
CMA's enforcement role
The CMA will continue to monitor pricing practices across the online retail sector and is committed to taking enforcement action if it appears non-compliance is continuing. Under the DMCC Act, it can impose substantial penalties, and it may also require redress to be paid to affected consumers. The CMA has already enforced the rules on drip pricing against four businesses, imposing fines totalling more than £5.1 million and securing more than £1.35 million in refunds for affected consumers.
What does this mean for you?
If you have not already done so, now is the time to review your platforms and online advertising to make sure that your pricing is clear and complies with the law. You can consult our Consumer Law Hub or contact us if you need more help with this.
