The Competition and Markets Authority (CMA) has launched a consultation on draft guidance for businesses on the price transparency provisions of the Digital Markets, Competition and Consumers Act 2024.

The new draft guidance follows the publication of wider guidance on unfair commercial practices (which we commented upon here) and relates specifically to the price transparency requirements for traders when making an invitation to purchase.

The draft guidance sets out what constitutes an invitation to purchase, making it clear, for example, that it can arise “even where the information indicating the price and characteristics of a product is minimal” and that it does not need to include an actual opportunity to enable the consumer to purchase the product. Guidance is also provided – complete with examples – on the pricing information that must be included in an invitation to purchase, advising that the price presented should be “realistic, meaningful and attainable for the product being advertised”, and presented in a “clear and timely way and include any fees, taxes, charges or other payments that the consumer will necessarily incur if the consumer purchases the product”. 

The draft guidance also outlines the ‘core principles’ that traders should follow when calculating and presenting the total price of their products in an invitation to purchase. As it explains, if the whole or part of the total price cannot reasonably be calculated (for example because the nature of the product means that the total price will depend upon a consumer’s requirements), consumers must be given the information they need to calculate the total price themselves (for example price per metre or price per kg) and that this information must be given as much prominence as the part of the total price that is calculable in advance.

Finally, the CMA provides a series of helpful case studies that explain in more detail how pricing information can be presented in a way that complies with the unfair commercial practices provisions of the DMCCA. 

The consultation closes on 8 September 2025 and more information can be found here.