Government bans against "drip pricing": What is this selling technique?

The Department of Consumer Affairs recently issued a warning against drip pricing. The warning cautioned the customers of the practice of drip pricing. Only a section pf the price is actually advertised initially. However, further fees are added later on in the process of purchase. The post on the platform X, formerly Twitter, by the Department of Consumer Affairs expressed that drip pricing can surprise the customers with hidden charges.

Understanding Drip Pricing

As per the Federal Trade Commission of the United States, Drip pricing is actually a pricing method in which companies actually advertise only a section of the price of the product, but express the other charges later as the customer walks through the purchasing process. Also, it is important to note that the added charges can actually turn out to be compulsory charges, like fees for optional upgrades, hotel resort fees, and more.

According to the government of Canada, consumers compare similar offerings by referring to the price. When the price represented appears to be inaccurate, this increases the chances of consumers making misinformed decisions and can lead to unfair outcomes for the competitors that are honest. Joe Biden, the President of United States had expressed warning against the drip pricing and suggested that the US government was planning the ban of the practice.

It is important to note that the consumer affairs department expressed instance by means of an infographic to provide better clarity on the working of drip pricing. The image shared by the consumer affairs department actually depicted a sneaker that priced Rs 4700. However, the price was not the same after checking out, which meant that it increased to Rs 51,00. This is definitely a price much higher than the advertised amount.

The Department of Consumer Affairs further suggested that in case one comes across situations like these, one can contact NCH 1915 for further assistance. One can also WhatsApp 880001915.