The UK's consumer watchdog has launched an investigation into several prominent companies for their use of "drip pricing," a practice that can significantly inflate the final cost of goods and services. The investigation, led by the Competition and Markets Authority (CMA), includes online rail ticket retailer Trainline, driving school RED Driving School, and holiday provider Virgin Holidays.
Drip pricing involves advertising an initial price and then revealing additional mandatory fees or charges later in the booking process. This can lead consumers to believe a product or service is cheaper than it ultimately is, potentially adding thousands of pounds to the cost of a holiday or other purchases.
The CMA's probe aims to determine whether these companies are engaging in misleading pricing that violates consumer protection laws. The watchdog has previously signaled its intent to crack down on drip pricing across various sectors, emphasizing the need for transparency in advertised prices.