The use of dynamic pricing came under the spotlight last year when Oasis fans were frustrated in their attempts to gain reunion tour tickets. The Competition and Markets Authority has now published guidance for businesses on when the use of dynamic pricing may be problematic.
Why has dynamic pricing become a hot topic?
Dynamic pricing – the real-time adjustment of prices in response to factors like demand, availability or customer behaviour – is commonplace in markets such as travel, where people understand pricing will change, depending on how far in advance they book, how popular certain routes may be and whether multiple providers offer the same service. This concept hit the headlines in 2024 when the popularity of Oasis ticket sales led to consumers feeling pressured to pay much higher prices than they were anticipating, due to fear of missing out. Individual consumers (that is, people acting in a personal capacity and not in the course of business) are well protected by various laws that address unfairness. Whilst people may expect fluctuating prices when booking flights, many were surprised by the use of dynamic pricing for concert tickets. The public backlash focused on Ticketmaster but also resulted in bad press for the band, as many fans felt the sales process was taking advantage of demand. As a result, the Competition and Markets Authority (CMA), the UK’s consumer and competition law regulator, launched an investigation into Ticketmaster’s handling of the sales.
How should businesses manage their use of dynamic pricing?
Separate to that investigation, the CMA has undertaken a project to understand sectors in which dynamic pricing is used and how it is implemented - not as an investigation but with the intention of exploring the issue and signposting good practice. The resulting guidance, published in June 2025, provides useful insights from those organisations surveyed, as well as pointers from the CMA as to when dynamic pricing is likely to present a problem. The guidance notes that “dynamic pricing can be consistent with effective competition and good outcomes for consumers”, especially if it encourages a wider choice of providers, but traders must beware the following:
- lack of transparency, meaning consumers do not understand that pricing is dynamic (or, if they do understand that, how pricing may change);
- promotions or processes that may not be understood by vulnerable consumers or those with limited digital literacy;
- pressure to make decisions before countdown timers run out or where availability is falsely advertised as being very limited.
The increase in online shopping in recent years lends itself to those who may use dynamic pricing tactics to take advantage. The CMA and the UK’s advertising regulator, the Advertising Standards Authority, have previously issued guidance against the use of online choice architecture that manipulates users’ behaviour, often known as “dark patterns”, and which can constitute harmful and unfair activity under consumer law. If your organisation sells online, take care to ensure any online prompts or messages do not pressurise or mislead customers.
What does the law say about dynamic pricing?
There is no specific law that addresses dynamic pricing but consumer protection laws prohibit practices that may be considered unfair or misleading. Information about pricing is material information that should be provided to a consumer before they choose whether to proceed with a purchase – omitting that information is likely to be considered an “unfair commercial practice”, which would be unlawful and could lead to those pricing terms being unenforceable, as well as potential sanctions for non-compliance.
The UK Digital Markets, Competition and Consumers Act 2004 (DMCCA) recently addressed a loophole that permitted “drip pricing”, the practice of adding charges to the price initially advertised before a consumer reaches an online checkout. Any use of dynamic pricing must therefore be managed to ensure the price advertised to a consumer is the price the consumer ultimately pays, i.e. dynamic pricing does not continue to fluctuate once they start the purchase journey. Ensure you monitor any website or app providers and how they present your goods and services. The DMCCA grants the CMA new powers to fine traders who do not comply, up to a value of 10% worldwide turnover for serious breaches.
Is it safe to use dynamic pricing?
Yes. Advertisements to consumers or notices as part of an online purchase journey must always be transparent and fair; dynamic pricing is just an additional aspect to consider in that assessment. If its use is likely to come as a surprise to consumers, or cannot be justified, that may lead to difficulty holding consumers to a transaction they dispute, as well as potential damage to your reputation.
Weightmans’ specialist commercial lawyers would be happy to advise your business on its trade with consumers.
Commercial law