The term drip pricing has been around since at least 2009, when the British publication New Age Media used it to talk about an inquiry into online advertising, and it became more widespread in 2012, when the Federal Trade Commission began raising alarms about it.
The practice itself, which is especially widespread in e-commerce, has been going on for decades — probably because it works.
A 2021 paper, for example, found that when StubHub, a secondary-ticket marketplace, used the technique on consumers, ticket revenue was about 20 percent more than when the total cost, with fees, was disclosed upfront.
Organizations:
New, Media, Federal Trade Commission