OFT has taken a dim veiw on online pricing models. Price comparison website are using the base price as the lowest prices which in lot of cases are not true. The problem is the fact that once you decide to buy something you see hidden charges coming up such as extras and other charges are added on when finishing the sale.

Which? magazine welcomed the investigation, claiming that some companies are misleading consumers in a way that would never be tolerated outside of the web.

Which? technology editor Matthew Bath told BBC News that they think consumers should be aware of the final price in the beginning.
Under scrutiny

The pricing practices going under the microscope include:

• Drip pricing - where consumers only see an element of the price upfront and end up paying much more due to optional or compulsory extras. This could include products sold by airlines, car hire firms and insurance companies

• Time-limited offers - such as sales that finish at the end of the month or last for one day only. Carpet stores and furniture sellers could be representative of this practice, the OFT said

• Baiting sales - where a company advertises discounts to attract visitors whilst having few items at that price on sale

• Reference prices - artificially inflating the pre-sale price of an item in order to make the discount look more attractive. This could refer to companies offering cruises, selling furniture or to supermarkets

• Complex pricing - where it is difficult for a consumer to assess an individual price, such as with three-for-two offers and 'free' add-ons. Mobile phone companies, supermarkets and computer stores could fall into this category.

According to OFT senior director Heather Clayton, the investigation will help to protect customers while allowing firms to compete freely.

The OFT hopes to complete the investigations by summer 2010.