Five shopping traps including ‘drip pricing’ adding to your bills – and how to avoid them
MILLIONS of shoppers have fallen victim to buying something they don’t need or come to regret because of traps, according to Citizens Advice.
Online tactics commonly used include auto-renewing subscriptions and ‘drip pricing’ techniques.
These traps add hidden costs to shopping bills and have left millions almost £2.1 billion worse off, according to the charity.
While legal, the tricks are catching shoppers off guard and often lead to serious buyer’s remorse.
Some 5.6 million people said that they had negatively impacted their household finances.
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 need legislation that can really keep pace with online retail.”
We explain the five shopping traps and how to avoid them.
1. Misleading or difficult to find information
A company is selective in what information it presents about a product or service.
For example, this might mean labelling a product as “best value” when the retailer also sells cheaper versions.
This could also include advertising something as reduced or a sale item when it wasn’t ever sold at full price.
2. Drip pricing
A website or app leads with a headline price but at checkout, the final price is higher after the necessary conditions are applied.
This makes it harder for consumers to compare prices across retailers.
The Prime Minister Rishi Sunak has recently launched a review into banning drip pricing.
3. Subscription traps
Most subscription firms are legitimate, from recipe boxes to wine clubs, regular razor deliveries to restaurant discounts.
They make it easy and appealing to begin a subscription, by offering a free trial or a big upfront discount.
In the worst cases, it’s so simple you don’t even realise you’ve signed up — you ticked the wrong box or missed small print about repeat payments.
One in four of us have signed up to a subscription by accident, says Citizens Advice.
But getting out requires a lot more effort, such as phone calls or scrolling through a firm’s website for an email address.
It is known as sludge tactics, when firms make exiting a contract feel like trudging through mud.
Before signing up for a subscription make sure you read the small print so you understand how to get out of it.
4. Limited stock claims
Some websites or apps might show something as “low in stock” or popular, for example: “100 people looked at this in the last 24 hrs”.
Previous research by Citizens Advice found that these scarcity tactics can result in consumers spending more than they intended to.
Some 28% report that they feel more pressured to make a purchase if they see these signs.
5. Countdown timers
Similar to limited stock claims, this pressure tactic involves having a countdown timer for when a sale ends.
These – often falsely – imply that a sale is about to expire.
So don’t automatically assume that just because it says you have just minutes or hours left you’ll lose out if you don’t buy it there and then.
How can I cut costs when shopping online?
If you’re shopping online and know exactly what you need make sure to write a list.
This will help discourage overspending on items that aren’t on your list.
Make sure to use price comparison tools like Google Shopping to find similar products from other retailers and compare prices.
And remember, if you spot a bargain it’s only a good deal if you need the item in the first place.
If you purchase something just because it’s on offer, you aren’t necessarily saving money.
Here are five other ways to cut your online shopping costs:
Become a member
The majority of online businesses offer exclusive discounts for new customers.
If you have more than one email address you can benefit from these offers multiple times.
You’ll not only get access to members only discounts, but you could also get discounted rates on home delivery depending on the retailer.
Sign up for newsletters
Let’s face it, no one likes an inbox full of junk.
But if you subscribe to the newsletters of your favourite brands, you can often access regular savings.
And if you get sick of the endless emails, you can simply unsubscribe.
Don’t buy the first time
If you’re a member or have an account with some retailers you could save money by not purchasing the item you want at first glance.
For example, if you look at the same product two or three times, the retailer might email you about it.
In the best case scenario, they send you a discount code or exclusive offer.
Worst case scenario, you’re just reminded of the items you didn’t choose to check out.
Search for discount codes
Searching for a retailer’s name and discount codes on a search engine can often be a golden ticket to cheaper prices.
Not all codes are guaranteed to work.
But you might get a direct link to the clearance or sale section of a retailer’s website.