Consumer law update - September 2025
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dhewitt@abta.co.uk Thu, 09/18/2025 - 11:54
We can now update on our previous guidance on the Digital Markets, Competition & Consumers Act and what it means for members.
The Act came in earlier this year, and it is where the law on unfair practices can be found – that is how you’re expected to treat your customers and what information you need to give them etc. To help you get it right, there’s the ABTA Code of Conduct and its guidance, and guidance from the Competition & Markets Authority (CMA).
The two issues we’ve been focusing on are the changes around pricing, and fake reviews. We issued a news item on fake reviews last month, and we now have a pricing update:
As noted in our previous item, and in the update we gave in the members’ video conference call, one very important issue for members is local/tourist taxes and resort fees. The CMA believes that the new Act means that they must be included in headline prices. The CMA’s proposed guidance states that ‘local taxes, resort fees and other unavoidable charges that become payable on arrival or departure at hotels, ports or airports’ are mandatory charges that must be included in prices.
You are not expected to collect the local taxes and fees, they are still to be paid by the customer at the accommodation or in resort, therefore the CMA believes your prices will need to show a total and then a breakdown of an amount paid to you and an amount paid locally.
The CMA has recently consulted on how businesses can achieve this. It states that even if the tax is in a foreign currency, it must be converted and included. As exchange rates can change, businesses will need to explain this and explain how the amount was arrived at. It provides an example of a website price display:
This isn’t yet finalised as the CMA’s guidance for businesses. It has been out for consultation, and the consultation recently closed. We’re waiting for the final version to come out in due course.
ABTA responded to the consultation on behalf of members and made arguments against including local taxes and fees in prices, for example:
We have stated that it is better to have a clear statement, near the price, to let consumers know the amount they will have to pay in destination.
The CMA expects to issue the finalised guidance in the Autumn. It may be that it does not change its position, despite our opposition, and it will expect prices to include local taxes and fees. We’ll keep you informed.
If you have any queries, please contact Member Support on membersupport@abta.co.uk, or 020 3117 0597.
Continue reading...
Full Page image
dhewitt@abta.co.uk Thu, 09/18/2025 - 11:54
We can now update on our previous guidance on the Digital Markets, Competition & Consumers Act and what it means for members.
The Act came in earlier this year, and it is where the law on unfair practices can be found – that is how you’re expected to treat your customers and what information you need to give them etc. To help you get it right, there’s the ABTA Code of Conduct and its guidance, and guidance from the Competition & Markets Authority (CMA).
The two issues we’ve been focusing on are the changes around pricing, and fake reviews. We issued a news item on fake reviews last month, and we now have a pricing update:
Including local taxes in prices
As noted in our previous item, and in the update we gave in the members’ video conference call, one very important issue for members is local/tourist taxes and resort fees. The CMA believes that the new Act means that they must be included in headline prices. The CMA’s proposed guidance states that ‘local taxes, resort fees and other unavoidable charges that become payable on arrival or departure at hotels, ports or airports’ are mandatory charges that must be included in prices.
You are not expected to collect the local taxes and fees, they are still to be paid by the customer at the accommodation or in resort, therefore the CMA believes your prices will need to show a total and then a breakdown of an amount paid to you and an amount paid locally.
The CMA has recently consulted on how businesses can achieve this. It states that even if the tax is in a foreign currency, it must be converted and included. As exchange rates can change, businesses will need to explain this and explain how the amount was arrived at. It provides an example of a website price display:
This isn’t yet finalised as the CMA’s guidance for businesses. It has been out for consultation, and the consultation recently closed. We’re waiting for the final version to come out in due course.
ABTA responded to the consultation on behalf of members and made arguments against including local taxes and fees in prices, for example:
- There is a huge number of local taxes, which differ widely, and it is very difficult for members to know accurately what they are
- Members are not responsible for collecting or paying these local taxes
- Including them in prices is confusing for customers as they may be misled into thinking they have paid in advance
- Prices displayed this way are in fact inaccurate as they include an amount converted into Sterling which will change
- Taxes could also change between booking and travel
- Members’ systems can’t calculate prices that have pay now and pay later elements and very time-consuming and expensive development work will have to be done.
We have stated that it is better to have a clear statement, near the price, to let consumers know the amount they will have to pay in destination.
The CMA expects to issue the finalised guidance in the Autumn. It may be that it does not change its position, despite our opposition, and it will expect prices to include local taxes and fees. We’ll keep you informed.
If you have any queries, please contact Member Support on membersupport@abta.co.uk, or 020 3117 0597.
Continue reading...
