One in six people (8.5 million) ended up buying something they didn’t want, need or came to regret because of online shopping traps used by some retailers.
This is according to new research by Citizens Advice released today.
Deceptive online tactics commonly used include auto-renewing subscriptions and ‘drip pricing’ techniques – where a website or app hooks a shopper in with headline prices, only to reveal at checkout the real price is higher when necessary add-ons are factored in. These tactics, while legal, are catching shoppers off guard and leading to serious buyers’ remorse.
At a time of mounting financial pressures on households, these online shopping traps cost consumers almost £2.1 billion last year through purchases they didn’t want, need or came to regret. Worryingly, two thirds of those who fell victim to these traps said it negatively impacted household finances (an estimated 5.6 million customers).
It’s costing people time as well as money, with people spending, on average, one day per year dealing with the consequences of these features, including chasing refunds or making a complaint afterwards.
With the government already targeting subscription traps in the Digital Markets, Competition and Consumer Bill, the charity is calling for proposals to go further and ban auto-renewing subscriptions.
However the charity says while clamping down on certain tactics is a start, it also wants to see new fit-for-purpose regulations and clear obligations for retailers when it comes to consumers’ interests and website or app design.
Matthew Upton, Acting Executive Director of Policy and Advocacy at Citizens Advice, said:
“With tactics like these, some online retailers are making it even harder for people to shop smart. The result is consumers wasting billions, at a time when many can least afford it.
“If we want to stop firms taking advantage of consumers in this way, we’ll need legislation that can really keep pace with online retail.”
