What Is 'Drip Pricing' That Centre Has Warned About?
Image: Pexels
7 May 2024
The government recently warned people against 'drip pricing' technique used by sellers in a post on X
Image: Pexels
The official X Handle of the Department of Consumer Affairs said that drip pricing can surprise consumers with hidden charges
Image: @jagograhakjago/X
The post asked people to contact the National Consumer Helpline (NCH) number 1915 or WhatsApp 8800001915 for assistance if they encounter such situations
Image: Unsplash
Drip pricing is a technique in which firms advertise only part of a product's price and reveal other ''hidden'' charges later during the checkout process
Image: Pexels
This strategy often involves concealing essential fees like taxes or booking fees, or excluding necessary add-ons
Image: Pexels
Consumers are first shown the base price for a good/service while additional fees are revealed or ''dripped'' later in the purchasing process
Image: Pexels
Businesses use the drip pricing technique to attract customers by starting with a lower price
Image: Unsplash
The department also shared an infographic showing how drip pricing works by giving an example of sneakers
Image: Pexels
The shoes are priced at Rs 4,700. However, after all the other charges included are added, it goes up to Rs 5,100
Image: Unsplash
Last month, US President Joe Biden also flagged 'drip pricing' and 'junk fees' and said his administration is working to end the practice