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What Is ‘Drip Pricing’ and Why Is the FTC Cracking Down on It? — Dollars and Sense

drip-pricing
drongo3, Flickr

Have you ever bought a cheap airline fare, only to be hit with fees later on that turned it into a far more expensive ticket? Congratulations — you’re a victim of ‘drip pricing.’

And the problem, which spawns several industries, has gotten so pervasive that the Federal Trade Commission is stepping in.

Drip pricing is loosely defined as a situation wherein a company advertises only one part of a product’s price, keeping other associated charges mum until later in the the buying process.

The travel and banking industries are especially guilty, but even cable companies — which sometimes don’t reveal equipment charges that will be added on to subscription specials — aren’t immune.

On Monday, the FTC planned a a free drip pricing workshop, open to everyone who wants to attend in Washington, DC. But if you can’t make that and still want your voice heard, you can call the Commission’s Consumer Response Center toll-free hotline (877-382-4357) or file your story online.

[The Consumerist]

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