Illustrative image: “Cardboard Boxes and their History” by Creativity103 / cr103.com, via Wikimedia Commons, CC BY 2.0.
The Competition and Markets Authority has warned online retailers before Christmas that compulsory delivery charges must be reflected in the total price shoppers see, rather than revealed only late in checkout.
Its open letter, published on 2 November, is a reminder about existing consumer law, not a new ban on delivery fees. Shops can charge for delivery. The issue is whether customers can see the true price early enough to compare offers.
Do online prices have to include delivery?
Where customers must pay for delivery to buy a product, the CMA says the total must include the minimum mandatory delivery charge throughout the sales process. That covers advertising, product pages, baskets and checkout, not just the final payment screen.
The requirements sit under the Digital Markets, Competition and Consumers Act 2024. The CMA says they also apply to online marketplaces, comparison sites and search engines displaying product prices.
A separately displayed delivery charge is not automatically unlawful. Retailers can show a breakdown, including a product price without delivery, provided the total price is presented clearly and in time for shoppers to see it.
What if faster delivery costs extra?
Optional charges can be shown separately. The CMA’s price-transparency guidance gives next-day delivery as an example. Such charges must still be disclosed clearly, rather than hidden behind menus, links or expandable sections.
If a shopper must choose between paid delivery options, the cheapest option should be included until they select a different one.
For a hypothetical example, if an item costs £20 and unavoidable standard delivery costs £3, the relevant total is £23. A genuinely optional faster-delivery upgrade can be identified separately. Those figures illustrate the distinction; they are not prices charged by a named retailer.
What about one delivery fee for the whole basket?
A flat charge for an entire order does not remove the requirement to show the total. The CMA’s letter specifically addresses shops where customers buy several products but pay one delivery fee.
Retailers may show the component prices as well as the total. The guidance also describes how a prominent running basket total, including delivery, may help a retail website comply. The important point is that shoppers should not have to reach the last checkout screen to discover an unavoidable charge.
Can delivery costs depend on your postcode?
Yes. The guidance recognises that some charges vary, including by location. Where a charge cannot reasonably be calculated in advance, the customer must receive enough information to work out the total, presented as prominently as the headline price.
Once the charge can reasonably be calculated, it must be included in the total. Variable pricing is therefore different from keeping delivery costs out of sight.
Does the warning mean shoppers can claim a refund?
Not automatically. The CMA says it will monitor pricing practices and may take enforcement action where non-compliance continues. If it finds the law has been broken, it can impose penalties and may require redress for affected consumers.
That is not a promise that everyone who has paid a delivery fee is owed money. The letter does not establish wrongdoing by any particular retailer.
For shoppers comparing Christmas purchases, the useful distinction is between a charge that is clearly explained and a compulsory cost that appears too late. Compare the total payable, not just the product’s headline price.