On 3 July 2025, the CMA launched a consultation on draft guidance (CMA209con) on price transparency requirements under the DMCCA when making an invitation to purchase (ITP). The consultation came about after businesses pointed to a lack of clarity in this area in CMA207. The draft guidance covers what constitutes an ITP, what pricing information should be included, what the total product price includes, how the rules apply to specific types of charges (for example, monthly subscriptions), and gives examples of when mandatory charges cannot be reasonably calculated in advance and how best to present relevant information.
General principles
- The emphasis, at least at the beginning of the guidance, is on pricing information being "realistic, meaningful and attainable" with a number of examples given. In this way, the guidance does not solely focus on the new drip pricing regime in s.230 but on the trader's wider obligations under the DMCCA. For example, it talks about situations where what might be considered optional elements should be included within the total price of a product so that it is not misleading (para 3.6-3.7).
- The guidance makes clear that each ITP must include the required information even if taking place early in the consumer journey (para 3.12). If the total price cannot reasonably be calculated, the information needed to enable the consumer to calculate the total price should be included for each ITP until the total price can be calculated (para 4.13). Once the total price becomes calculable, it must then be presented from that point onwards.
- Partitioned pricing (the practice of providing the component parts of a price without giving the overall total) will generally be prohibited since it is not consistent with providing the ‘total price’ of the product (para 3.18). It is not enough to present the individual price components and expect the consumer to calculate the total price. Where some, but not all, of the price is calculable, the trader should provide a headline price inclusive of all the calculable elements. Any remaining charges should be set out with the same prominence as the headline price. (This doesn’t mean that traders can't include the total price plus each of the elements that form part of it).
- If the total price cannot reasonably be calculated, various options are given including: (a) presenting a full list, (b) presenting an indicative or 'from' (or 'to/from') price, and (c) structuring the process to obtain the information required to calculate the total price from consumers at the outset (and not doing so could lead to misleading pricing information) (para 4.15). The expectations here are quite high.
- There are a lot of examples based on using running totals and the basket flexing through the purchasing process (eg to reflect delivery costs).
- In most cases, traders should be able to provide material pricing information in a full and timely manner regardless of the means of communication used (para 4.17). It is clear that arguments based on lack of space and time will rarely work. Where, by exception, the means of communication used has limitations that mean it is genuinely not practicable to present all the required pricing information on the face of the ITP, the trader should take steps to overcome these limitations in order to provide the consumer with the required pricing information by another means (4.18).
- The CMA sets out how it will address the equal prominence requirement (where mandatory charges are split out as they cannot reasonably be calculated in advance). In practice, this means the information about the additional charges should be set out in the invitation to purchase next to the headline price of the product (eg immediately underneath or next to, rather than somewhere else on the page) (para 4.12). The font size etc in the example given is the same as that used for the total price.
- The requirement to give the total price, inclusive of all mandatory charges, applies irrespective of whether the charges are to be paid to the trader making the invitation to purchase or another trader (para 5.27).
Specific scenarios
- For periodic contracts (eg a 12-month gym membership) that are rolling, the total price may be the total price payable each month. For minimum or fixed term contracts the trader may advertise the ‘total price’ as either: the total price that the consumer pays for each period of the contract in the same way as for a rolling contract, alongside a prominent statement of the number of months the consumer is committed to pay that price for (total monthly price); or the cumulative price that the consumer will necessarily incur over the entire minimum length of the contract (total cumulative price) (para 5.28 onwards). In each case, however, the total price must include all mandatory costs. For minimum or fixed term contracts, these would need to be included within either the total cumulative price (if that is used) or the total price for the first month that includes those fees (if monthly pricing is used). The examples given (which are said to comply) are: "The price of this membership is advertised as ‘£70 per month for 12 months, plus a £30 joining fee (Total price for a year: £870)’. It would also be lawful for the price to be presented as ‘12 months Membership: You pay £100 for the first month, then £70 per month for the remaining 11 months".
- There is a lengthy section on delivery (para 5.10 onwards). It is clear that the CMA's expectations are high. Where a product is presented as being delivered to the consumer, the stated price should include the cost of delivery (para 3.4). Where a consumer must choose between delivery charges (ie there is no collection option) the trader must include the cheapest delivery option until the consumer chooses a different one (para 5.12). Mandatory delivery fees should be included early on in the purchasing journey (para 5.7). There is a basic expectation that the total price (and/or basket price) should be able to flex as the consumer proceeds through its purchasing journey (para 5.10) and that it will be rare for a trader not to be able to calculate delivery charges in advance (even where such charges are variable), however, the guidance is detailed and nuanced in this area and worth reading in detail.
- There is also an extensive section on local taxes (paras 4.4, para 4.7 and 5.20 onwards). Local charges and taxes will normally be calculable and should be included in the total price (para 5). It is not completely clear how far this requirement goes but it seems to be a broad obligation.
What does this mean for you?
Once finalised, this guidance will complement CMA207 which covers unfair commercial practices under the DMCCA and will replace the material pricing information in CMA207. The guidance adds a considerable level of detail to CMA207 which will be helpful to those with more complex pricing structures. The consultation closes on 8 September 2025 so those whose pricing model does not easily fit in to the examples or within the guidance may want to respond. Please let us know if we can help.
