CMA Warns Online Retailers to Include Delivery Fees in the Total Price Before Christmas
The Competition and Markets Authority wrote to online retailers on 2 November 2026 reminding them that mandatory delivery fees must be included in the total price shown up front. Breaches can lead to fines of up to 10% of turnover or £300,000, whichever is greater.
By Entrepreneur Group · Published
The Competition and Markets Authority (CMA) has told online retailers that mandatory delivery fees must be included in the total price customers see from the start. In an open letter published on 2 November 2026, the regulator said some businesses still are not complying, and that it will take enforcement action if that continues. Under the Digital Markets, Competition and Consumers Act 2024, a breach can lead to a fine of up to 10% of turnover or £300,000, whichever is greater.
The letter is timed for the run-up to Christmas, when online spending peaks. Its message is summed up in one line: "The first price consumers see should be the price they pay."
What the rules require
The law says that when a business gives a price as an invitation to purchase, it must be the total price. That includes any mandatory delivery or collection fees and other unavoidable fees, taxes and charges. The CMA's summary guidance says: "It's illegal to hide additional fees, taxes or other charges that the customer will have to pay." This practice is known as drip pricing.
According to the letter, the total price must be shown at every stage where a price appears, including:
- Online advertising
- Product pages
- Baskets and carts
- Checkout and payment pages
What the CMA is looking for
The letter lists practices the CMA regards as non-compliant:
- Showing a product price that leaves out a mandatory delivery charge
- Leaving mandatory delivery charges out of basket totals or order summaries
- Not giving information about optional delivery fees, or hiding it behind links, pop-outs, expandable sections or drop-down menus
- Only revealing delivery charges late in the checkout
There is some flexibility. A retailer that charges a flat delivery fee across a basket can show a breakdown, for example displaying a product's price both including and excluding delivery, as long as the total including delivery is clear. Optional delivery, such as paying extra for next-day, can be shown separately from the total, but customers must be told clearly that it applies. The summary guidance adds that where customers have to choose between delivery options, retailers should show the cheapest until they pick another. If a charge cannot reasonably be calculated in advance, the business must say that an extra charge may be payable.
Marketplaces, comparison sites and search engines are covered too. Where each seller sets its own delivery charge, they must include it in the total price shown for each product.
The CMA has already acted
The regulator says it has already enforced the drip pricing rules against four businesses, imposing fines of more than £5.1 million in total and securing more than £1.35 million in refunds for consumers. As well as fines, the CMA can order businesses to compensate affected customers.
The detailed rules are in the CMA's price transparency guidance, CMA209, first published in November 2025. Paragraphs 5.2 to 5.21 cover delivery fees.
What it means for founders
This section is editorial guidance. If you sell online, check your site as a customer would before the Christmas rush. Look at your adverts, product pages, basket and checkout, and ask whether the first price shown includes any delivery charge every customer must pay. Check that optional delivery prices are visible on the page, not tucked into a drop-down. If you sell through a marketplace, check how your delivery charge appears in its listings too. If you are unsure whether your pricing complies, the CMA guidance is the place to start, and a legal adviser can help with specific cases.
Frequently asked questions
Do online shops have to include delivery in the price?
Yes, if the delivery fee is mandatory. The CMA says mandatory delivery or collection fees must be included in the total price shown in the invitation to purchase and at every later stage where a price is given.
What is drip pricing?
Drip pricing is when extra fees or charges are revealed only as a customer moves through the purchase. The CMA's guidance says it is illegal to hide fees, taxes or other charges the customer will have to pay.
What is the fine for drip pricing in the UK?
According to CMA guidance, a breach of the price transparency rules can lead to a fine of up to 10% of turnover or £300,000, whichever is greater, and an order to compensate affected customers.
Sources
- CMA: Open letter to online retailers: including mandatory delivery fees in the total price (2 November 2026) (reviewed 4 November 2026)
- CMA: Providing clear and accurate information about prices (summary of CMA209) (reviewed 4 November 2026)
- CMA: Price transparency (CMA209) (reviewed 4 November 2026)