Don’t look back in anger - But do look forward to price transparency

After last year’s Oasis reunion ticket sale - where Ticketmaster customers saw prices jump at checkout (you could say prices rose Little by Little with demand) - the UK’s CMA launched a review into dynamic pricing.

Typically involving real-time price changes based on demand, timing, or customer behaviour, dynamic pricing has expanded beyond travel and transport into everyday markets, prompting regulatory concern.

This week, the CMA released an update on its review, focusing on ensuring dynamic pricing doesn’t undermine consumer trust or result in unfair treatment - especially for vulnerable groups.

What has the CMA learnt so far?

The CMA notes that dynamic pricing is now widespread across sectors like retail, entertainment, and utilities - not just travel and hospitality. Yet many consumers remain unaware that prices can vary based on their behaviour or profile, raising concerns about fairness.

While dynamic pricing can deliver benefits like lower costs and efficiency, it may disadvantage those less digitally savvy or able to compare prices. The CMA is especially concerned when:

• consumers aren’t aware dynamic pricing is in use
• sudden price shifts pressure quick decisions
• vulnerable groups pay more, or
• pricing strategies reinforce market dominance and reduce competition

Practical takeaways for businesses

Dynamic pricing isn't illegal, but how it's applied and communicated is regulated. Under the Digital Markets, Competition and Consumers Act 2024 (DMCC), businesses must disclose all material information for informed consumer decisions. Misleading consumers - through false claims or omissions - is banned and can now lead to fines of up to 10% of global turnover.

While the CMA hasn't detailed every form of dynamic pricing, it stresses that businesses must assess what’s material based on their pricing models and customer interactions. The CMA will use its enforcement powers against serious misconduct, such as false pricing or exploiting vulnerable consumers.

Helpfully, alongside its update on the investigation’s findings, the CMA published tips for businesses using dynamic pricing. These should be considered by those currently using the strategy or exploring its future use:

• be open about pricing models: Don’t assume customers understand your pricing strategy. Clearly communicate if prices are dynamic and subject to change
• state that prices can change: Avoid giving the impression that prices are fixed if they’re not. Marketing materials should reflect the potential for price variation
• provide relevant information at the right time: Share details like:
  • what causes prices to change (e.g. time until booking)
  • price ranges (minimum and maximum)
  • when this information is most useful (e.g. before purchase decisions)
• make information clear and prominent: Use readable fonts, visible placement, and avoid hiding key details in small print or behind hyperlinks
• explain key terms simply: Use plain language and examples to clarify terms like “reserved” or “locked-in” pricing
• support vulnerable consumers: Consider how your pricing approach affects those with lower digital literacy or financial flexibility. Offer additional support where needed
• avoid pressuring consumers: Don’t create urgency through fast-changing prices, especially during online queues or checkout processes
• don’t change prices during payment: Ensure the price shown at the point of purchase is the final price. Changing it mid-checkout may breach consumer law

In summary

The CMA has confirmed that the existing legal framework applies to dynamic pricing and will be enforced - now with added clarity through its latest guidance. Businesses should not be complacent: the CMA is alert to potential consumer harm, and the bar for accountability has been raised. Claiming ignorance will no longer wash, enforcement is not a distant prospect, but a live and immediate risk.

Need advice?

If your business is currently using or exploring dynamic pricing models, or if you’re unsure whether your practices align with the latest CMA guidance, our Consumer team is here to help. We can advise on compliance, risk mitigation, and how to communicate pricing strategies transparently and fairly.