The UK's consumer watchdog, the Competition and Markets Authority (CMA), has launched investigations into Trainline, Virgin Atlantic, and RED Driving School over concerns they may be engaging in "drip pricing." This practice involves not disclosing mandatory fees upfront, leading to higher final costs for consumers.
The CMA is examining whether these companies have illegally withheld the full price of services until later in the booking process. If found in violation of the law, the companies could face fines or be ordered to compensate customers.
In the case of Trainline, the CMA noted that additional fees of up to £2.79 per train fare and £1.50 per coach booking were added to headline prices. These seemingly small amounts can accumulate for frequent travelers. Trainline has faced similar scrutiny before, with the Office of Rail and Road previously flagging it and other ticket sellers for not being transparent about fees in 2023.
Virgin Atlantic is under investigation regarding its package holidays, specifically whether mandatory resort fees and local taxes were omitted from the initial advertised prices. The CMA stated that these fees can vary significantly and potentially add hundreds of pounds to the total cost of a holiday.
RED Driving School is also being examined for its pricing practices. The CMA is investigating whether mandatory booking and digital fees were excluded from the upfront prices for driving lessons, with potential fees exceeding £7 per lesson. This investigation follows a previous action by the CMA, which ordered two other driving schools to issue refunds to over 80,000 customers for failing to disclose total lesson prices during online booking earlier this year.
Emma Cochrane, the CMA's executive director for consumer protection, emphasized the importance of transparent pricing, stating, "The first price customers see should be the price they pay." She added that in the current economic climate, consumers need clear pricing without unexpected extra fees when booking travel or services.
Trainline and Virgin Atlantic have both stated their commitment to transparency and pledged to cooperate fully with the CMA's investigation. Trainline indicated it is already taking steps to improve how certain fees are presented. Virgin Atlantic Holidays stated that mandatory fees are disclosed at multiple stages of the booking process and that they are carefully reviewing the CMA's concerns.
RED Driving School has been contacted for comment.