Hidden fees for online customers, also known as “drip pricing,” are set to be banned under new law proposals. The government conducted a consultation on consumer transparency and found that some businesses are not clear enough about their prices. The new rules will be part of the Digital Markets, Competition and Consumers Bill. Drip pricing occurs when shoppers are shown an initial price for a product or service online, only to discover additional fees during the checkout process. This practice is widespread in the entertainment and hospitality industries, costing consumers billions of pounds each year.

Under the new rules, mandatory fees must be included in the headline prices online. For example, when purchasing cinema or train tickets, any mandatory booking fees must be clear from the start of the shopping process. Optional add-ons like airline seat reservations or luggage upgrades will not be included in these measures. The rules are expected to come into force this spring.

Minister for enterprise, markets, and small business, Kevin Hollinrake, stated that modern-day shopping provides customers with more choices but also increases the risk of confusion, scams, and unexpected costs. The new Bill aims to help customers compare purchases and protect them from fake reviews. Reviews are widely used by consumers when making purchasing decisions and contributed to the £224 billion spent in online retail markets in 2022. The Competition and Markets Authority (CMA) has provided guidance to tackle fake reviews, making website hosts accountable for the reviews on their pages.

The Price Marking Order (PMO), which requires traders to display the final selling price, will also be reformed. The proposed changes will ensure that unit pricing is consistently applied, including to promotions and special offers, to help shoppers compare like-for-like and determine the best value. The CMA has expressed support for the government’s efforts to tackle misleading behavior and protect shoppers from being misled or losing money.

In conclusion, hidden fees for online customers, known as drip pricing, will be banned under new law proposals. The government aims to increase transparency in pricing and protect consumers from unexpected costs. The new rules will require mandatory fees to be included in headline prices online, while optional add-ons will not be included. The government is also taking steps to tackle fake reviews and ensure that unit pricing is consistently applied. These measures aim to help customers make informed purchasing decisions and compare prices effectively.

Original news source: Drip pricing: Hidden fees for online customers set to be banned (BBC)

🎧 Listen:

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📖 Vocabulary:

Group or Classroom Activities

Warm-up Activities:

– News Summary
Instructions: Divide the class into pairs. Give each pair a copy of the article. Instruct them to read the article and work together to write a concise summary of the main points. After a few minutes, have pairs share their summaries with the rest of the class.

– Opinion Poll
Instructions: Ask students to form small groups. Give each group a list of questions related to the article, such as “Do you think banning hidden fees will benefit consumers?” or “Have you ever been a victim of drip pricing?”. Instruct the groups to discuss the questions and record their opinions. After a set amount of time, have each group share their opinions with the class.

– Vocabulary Pictionary
Instructions: Write a list of key vocabulary words from the article on the board. Divide the class into teams. Give each team a whiteboard or a large sheet of paper. One student from each team will come to the front of the class and choose a word from the list. They must then draw a picture to represent the word, while their team tries to guess what the word is. The team that guesses correctly earns a point. Repeat with different students and words until all the vocabulary has been covered.

– Pros and Cons
Instructions: Divide the class into two groups. Assign one group to argue the pros of banning hidden fees, and the other group to argue the cons. Give the groups time to brainstorm their arguments. Then, have a debate where each group presents their points and counterarguments. Encourage students to use evidence from the article to support their arguments.

– Future Predictions
Instructions: Instruct students to work individually or in pairs. Ask them to imagine what the online shopping experience will be like in the future, considering the new rules on hidden fees and other potential changes. Have students write a short paragraph or create a visual representation of their predictions. Afterward, have students share their ideas with the class and discuss their predictions.

🤔 Comprehension Questions:

1. What is drip pricing and why is it problematic for consumers?
2. How will the new rules require businesses to be more transparent about their prices?
3. What types of fees will be included in the headline prices online under the new rules?
4. Why are optional add-ons like airline seat reservations not included in the new measures?
5. According to the article, what is the purpose of the Digital Markets, Competition and Consumers Bill?
6. How does the government plan to protect consumers from fake reviews?
7. What changes will be made to the Price Marking Order (PMO) under the proposed reforms?
8. What are the overall goals of the new law proposals mentioned in the article?
Go to answers ⇩

🎧✍️ Listen and Fill in the Gaps:

Hidden fees for online customers, also known as “drip pricing,” are set to be banned under new law proposals. The government conducted a (1)______ on (2)______ transparency and found that some businesses are not clear enough about their prices. The new rules will be part of the Digital Markets, Competition and Consumers Bill. Drip pricing occurs when shoppers are shown an initial price for a product or service online, only to (3)______ additional fees during the checkout process. This practice is widespread in the (4)______ and hospitality industries, costing consumers billions of pounds each year.

Under the new rules, mandatory fees must be included in the headline prices online. For example, when purchasing cinema or train tickets, any mandatory booking fees must be clear from the (5)______ of the shopping process. Optional add-ons like airline seat reservations or luggage (6)______ will not be included in these measures. The rules are (7)______ to come into force this spring.

Minister for enterprise, markets, and small business, Kevin Hollinrake, stated that modern-day shopping provides customers with more choices but also increases the risk of confusion, scams, and unexpected costs. The new Bill aims to help customers (8)______ purchases and protect them from fake reviews. Reviews are widely used by consumers when making purchasing decisions and contributed to the £224 billion spent in online retail markets in 2022. The Competition and (9)______ Authority (CMA) has (10)______ guidance to tackle fake reviews, making website hosts accountable for the reviews on their pages.

The Price Marking (11)______ (PMO), which requires traders to display the final selling price, will also be reformed. The proposed changes will ensure that unit pricing is consistently applied, including to promotions and special offers, to help shoppers compare like-for-like and determine the best (12)______. The CMA has expressed support for the government’s efforts to (13)______ misleading behavior and protect shoppers from being misled or losing money.

In conclusion, hidden fees for online customers, known as drip pricing, will be banned under new law proposals. The government aims to increase transparency in pricing and protect consumers from unexpected (14)______. The new rules will require mandatory fees to be included in headline prices online, while optional add-ons will not be included. The government is also taking steps to tackle fake (15)______ and ensure that unit pricing is consistently applied. These measures aim to help customers make informed (16)______ decisions and compare prices effectively.
Go to answers ⇩

💬 Discussion Questions:

Students can ask a partner these questions, or discuss them as a group.

1. How would you feel if you were shown an initial price for a product online, but then discovered additional fees during the checkout process?
2. Do you think it is fair for businesses to hide additional fees from customers? Why or why not?
3. Have you ever experienced drip pricing when shopping online? How did it make you feel?
4. What is your opinion on the new law proposals to ban hidden fees for online customers?
5. How do you think the new rules will benefit consumers?
6. Do you think the government should also include optional add-ons in the mandatory fee requirements? Why or why not?
7. How often do you read reviews before making a purchase? Why or why not?
8. Have you ever been misled by a fake review? How did it impact your purchasing decision?
9. Do you think website hosts should be held accountable for the reviews on their pages? Why or why not?
10. How important is price transparency to you when making purchasing decisions?
11. What other measures do you think the government could take to protect consumers from misleading behavior?
12. How do you determine the best value when comparing prices online?
13. What are some potential challenges or drawbacks of implementing these new rules?
14. How do you think these new rules will impact businesses in the entertainment and hospitality industries?
15. Do you think these new rules will be effective in preventing hidden fees and increasing transparency? Why or why not?

Individual Activities

📖💭 Vocabulary Meanings:

Match each word to its meaning.

Words:
1. consultation
2. transparency
3. mandatory
4. hospitality
5. consumers
6. add-ons
7. enterprise
8. scams
9. accountability
10. guidance
11. tackle
12. misleading
13. promotions
14. transparency
15. informed

Meanings:
(A) A process of seeking advice or opinions from others
(B) Additional items or services that can be purchased separately from the main product
(C) The industry that provides services to guests, including accommodation and food
(D) Having or showing knowledge about a subject or situation
(E) The quality of being open and easy to understand (used again as it fits the context)
(F) Advice or information aimed at resolving a problem or issue
(G) People who purchase goods and services for personal use
(H) The quality of being open and easy to understand
(I) Responsibility for one’s actions or decisions
(J) To confront or deal with a problem directly
(K) Special offers or discounts intended to encourage sales
(L) Causing someone to believe something that is not true
(M) A business or economic activity, particularly one that involves taking risks
(N) Fraudulent schemes or deceptions
(O) Required by law or rules; compulsory
Go to answers ⇩

🔡 Multiple Choice Questions:

1. What is drip pricing?
(a) When shoppers are given a discount on a product or service if they purchase it online.
(b) When shoppers are given a refund for a product or service if they find it cheaper elsewhere.
(c) When shoppers are charged a fee for using a specific payment method online.
(d) When shoppers are shown an initial price for a product or service online, only to discover additional fees during the checkout process.

2. What will the new rules require regarding mandatory fees?
(a) They must be clearly stated at the end of the shopping process.
(b) They must be included in optional add-ons.
(c) They must be included in the headline prices online.
(d) They must be shown separately from the headline prices online.

3. Which industries commonly use drip pricing?
(a) Technology and telecommunications.
(b) Fashion and beauty.
(c) Entertainment and hospitality.
(d) Automotive and transportation.

4. What is the purpose of the Digital Markets, Competition and Consumers Bill?
(a) To increase transparency in pricing.
(b) To protect consumers from unexpected costs.
(c) All of the above.
(d) To ban hidden fees for online customers.

5. What is the role of the Competition and Markets Authority (CMA) in tackling fake reviews?
(a) Providing guidance to website hosts to make them accountable for the reviews on their pages.
(b) Banning the use of reviews in online retail markets.
(c) Conducting consultations on consumer transparency.
(d) Enforcing the new rules on mandatory fees.

6. What is the purpose of the Price Marking Order (PMO)?
(a) To ban promotions and special offers.
(b) To require traders to display the final selling price.
(c) To ensure that unit pricing is consistently applied.
(d) To increase transparency in pricing.

7. What is the government’s aim in implementing these new rules?
(a) To protect customers from fake reviews.
(b) To help customers compare purchases.
(c) To increase transparency in pricing.
(d) All of the above.

8. When are the new rules expected to come into force?
(a) This spring.
(b) Next year.
(c) In a few months.
(d) The article does not mention a specific timeframe.

Go to answers ⇩

🕵️ True or False Questions:

1. Hidden fees for online customers, also known as “drip pricing,” are not set to be banned under new law proposals.
2. The government aims to increase transparency in pricing and protect consumers from unexpected costs.
3. Mandatory fees are not required to be included in the headline prices online under the new rules.
4. The new rules will be part of the Digital Markets, Competition and Consumers Bill.
5. The government conducted a consultation on consumer transparency and found that some businesses are not clear enough about their prices.
6. Drip pricing occurs when shoppers are not shown an initial price for a product or service online, only to discover additional fees during the checkout process.
7. Optional add-ons like airline seat reservations or luggage upgrades will be included in these measures.
8. The rules are expected to come into force this spring.
Go to answers ⇩

📝 Write a Summary:

Write a summary of this news article in two sentences.

Writing Questions:

Answer the following questions. Write as much as you can for each answer.

1. What is drip pricing and why is it a concern for consumers?
2. How will the new rules on pricing transparency affect the entertainment and hospitality industries?
3. What are some examples of mandatory fees that will be required to be included in headline prices online?
4. How will the proposed changes to the Price Marking Order benefit shoppers?
5. What other measures is the government taking to protect consumers, besides banning drip pricing?

✅ Answers

🤔✅ Comprehension Question Answers:

1. What is drip pricing and why is it problematic for consumers?
Drip pricing is when shoppers are shown an initial price for a product or service online, only to discover additional fees during the checkout process. This practice is problematic for consumers because it can lead to unexpected costs and a lack of transparency in pricing.

2. How will the new rules require businesses to be more transparent about their prices?
The new rules will require businesses to include mandatory fees in the headline prices online. This means that any fees that are required for a purchase, such as booking fees for cinema or train tickets, must be clear from the start of the shopping process.

3. What types of fees will be included in the headline prices online under the new rules?
Under the new rules, mandatory fees will be included in the headline prices online. These are fees that are required for a purchase and must be clear from the start of the shopping process.

4. Why are optional add-ons like airline seat reservations not included in the new measures?
Optional add-ons like airline seat reservations are not included in the new measures because they are not mandatory fees. The focus of the new rules is on ensuring transparency for fees that are required for a purchase.

5. According to the article, what is the purpose of the Digital Markets, Competition and Consumers Bill?
The purpose of the Digital Markets, Competition and Consumers Bill is to increase consumer transparency, protect consumers from fake reviews, and ensure that unit pricing is consistently applied. It aims to help customers compare purchases and make informed decisions.

6. How does the government plan to protect consumers from fake reviews?
The government plans to protect consumers from fake reviews by making website hosts accountable for the reviews on their pages. The Competition and Markets Authority (CMA) has provided guidance to tackle fake reviews and ensure that website hosts take responsibility for the reviews on their platforms.

7. What changes will be made to the Price Marking Order (PMO) under the proposed reforms?
Under the proposed reforms, changes will be made to the Price Marking Order (PMO) to ensure that unit pricing is consistently applied. This includes applying unit pricing to promotions and special offers, to help shoppers compare like-for-like and determine the best value.

8. What are the overall goals of the new law proposals mentioned in the article?
The overall goals of the new law proposals mentioned in the article are to increase transparency in pricing, protect consumers from unexpected costs, tackle fake reviews, and help customers make informed purchasing decisions. The government aims to ensure that consumers can compare prices effectively and make choices without being misled or losing money.
Go back to questions ⇧

🎧✍️✅ Listen and Fill in the Gaps Answers:

(1) consultation
(2) consumer
(3) discover
(4) entertainment
(5) start
(6) upgrades
(7) expected
(8) compare
(9) Markets
(10) provided
(11) Order
(12) value
(13) tackle
(14) costs
(15) reviews
(16) purchasing
Go back to questions ⇧

📖💭✅ Vocabulary Meanings Answers:

1. consultation
Answer: (A) A process of seeking advice or opinions from others

2. transparency
Answer: (H) The quality of being open and easy to understand

3. mandatory
Answer: (O) Required by law or rules; compulsory

4. hospitality
Answer: (C) The industry that provides services to guests, including accommodation and food

5. consumers
Answer: (G) People who purchase goods and services for personal use

6. add-ons
Answer: (B) Additional items or services that can be purchased separately from the main product

7. enterprise
Answer: (M) A business or economic activity, particularly one that involves taking risks

8. scams
Answer: (N) Fraudulent schemes or deceptions

9. accountability
Answer: (I) Responsibility for one’s actions or decisions

10. guidance
Answer: (F) Advice or information aimed at resolving a problem or issue

11. tackle
Answer: (J) To confront or deal with a problem directly

12. misleading
Answer: (L) Causing someone to believe something that is not true

13. promotions
Answer: (K) Special offers or discounts intended to encourage sales

14. transparency
Answer: (E) The quality of being open and easy to understand (used again as it fits the context)

15. informed
Answer: (D) Having or showing knowledge about a subject or situation
Go back to questions ⇧

🔡✅ Multiple Choice Answers:

1. What is drip pricing?
Answer: (d) When shoppers are shown an initial price for a product or service online, only to discover additional fees during the checkout process.

2. What will the new rules require regarding mandatory fees?
Answer: (c) They must be included in the headline prices online.

3. Which industries commonly use drip pricing?
Answer: (c) Entertainment and hospitality.

4. What is the purpose of the Digital Markets, Competition and Consumers Bill?
Answer: (d) To ban hidden fees for online customers.

5. What is the role of the Competition and Markets Authority (CMA) in tackling fake reviews?
Answer: (a) Providing guidance to website hosts to make them accountable for the reviews on their pages.

6. What is the purpose of the Price Marking Order (PMO)?
Answer: (b) To require traders to display the final selling price.

7. What is the government’s aim in implementing these new rules?
Answer: (b) To help customers compare purchases.

8. When are the new rules expected to come into force?
Answer: (a) This spring.
Go back to questions ⇧

🕵️✅ True or False Answers:

1. Hidden fees for online customers, also known as “drip pricing,” are not set to be banned under new law proposals. (Answer: False)
2. The government aims to increase transparency in pricing and protect consumers from unexpected costs. (Answer: True)
3. Mandatory fees are not required to be included in the headline prices online under the new rules. (Answer: False)
4. The new rules will be part of the Digital Markets, Competition and Consumers Bill. (Answer: True)
5. The government conducted a consultation on consumer transparency and found that some businesses are not clear enough about their prices. (Answer: True)
6. Drip pricing occurs when shoppers are not shown an initial price for a product or service online, only to discover additional fees during the checkout process. (Answer: False)
7. Optional add-ons like airline seat reservations or luggage upgrades will be included in these measures. (Answer: False)
8. The rules are expected to come into force this spring. (Answer: True)
Go back to questions ⇧