Britain's competition regulator has launched investigations into Trainline, Virgin Atlantic, and Red Driving School over concerns that customers were not shown full prices upfront. The Competition and Markets Authority (CMA) is examining whether all mandatory fees were displayed clearly on the app and website for travellers purchasing train and coach tickets in advance.
The CMA noted transactions with additional fees ranging from 59 pence to £2.79, including a £1.50 booking fee for coach journeys. The regulator stated that consumers affected by illegal practices could be eligible for compensation.
These investigations are part of a broader initiative by the CMA to address misleading pricing tactics, which includes practices where mandatory charges are presented separately from the initial price or added later in the purchasing process, a method known as drip pricing. Such practices can lead to unexpected costs for consumers and may distort competition by making companies appear cheaper than they are.
The investigation into Virgin Atlantic will focus on mandatory resort fees and local taxes associated with package holidays. Red Driving School is being scrutinized for how a mandatory booking fee and a digital fee, typically £7 per booking, were displayed for driving lessons.
All three companies received advisory letters as part of the CMA's initial consumer protection efforts using its new enforcement powers. These letters alerted the businesses to their legal obligations, but the CMA expressed ongoing concerns following continued monitoring of their pricing practices.
Emma Cochrane, executive director for consumer protection at the CMA, emphasized the importance of clear pricing for consumer confidence and choice. "Unexpected mandatory charges make this much harder, which is why the CMA initially put these firms on notice over concerns about their pricing practices and is now opening formal investigations," Cochrane said.
A spokesperson for Trainline stated the company is committed to transparent pricing and has been proactively engaging with the CMA, taking steps to improve how certain fees are presented. Virgin Atlantic Holidays indicated that mandatory fees are shown at multiple stages of the booking process and pledged full cooperation with the investigation. Red Driving School was contacted for comment.