Investigation into web 'drip pricing' launched

The Office of Fair Trading (OFT) is to investigate the way products for sale are advertised and priced on the web.

It has begun a consultation that will focus on several areas including so-called 'drip pricing' - where several additional charges are added to the price of a product being sold.

One-day only offers and discounted items will also come under the OFT's scrutiny. However, the study is not expected to be complete until the summer of 2010.

Heather Clayton, the OFT's senior director, said: "These studies will ensure that we keep up to date with the latest developments and, in particular, on how new pricing and advertising practices are emerging and evolving online."

Several online retailers have welcomed the investigation.

Mark Pearson, founder of MyVoucherCodes.co.uk said: "Far too often, retailers issue a discount without an end date so when web savvy shoppers click through to get the deal they find it has expired."

Chris Brown, co-founder of Sunshine.co.uk, said: "It is common for costs to be added as the consumer continues through the buying process and therefore people end up paying considerably more than the original price that attracted them.

"Several of the big-name high-street and online holiday companies are guilty of this and we hope that the OFT makes an example of them as a result of their investigations," Brown continued.