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The consumer watchdog, the Competition and Markets Authority (CMA), has launched investigations into Trainline, Virgin Atlantic, and RED Driving School over concerns that these companies may not be displaying full prices to customers upfront. The CMA is probing whether these firms have engaged in “drip pricing,” an illegal practice where mandatory charges are added after the initial price is presented, rather than being included in the headline price.
If the CMA finds evidence that the companies have violated consumer law, it can impose fines or require the businesses to provide compensation to affected customers. The companies involved have emphasized their commitment to transparency and pledged to cooperate fully with the CMA’s inquiries.
Trainline is under scrutiny for adding fees of up to £2.79 on train fares and £1.50 on coach bookings after the advertised price, costs that the CMA notes can accumulate for frequent travelers. This is not the first time Trainline has faced such accusations. In 2023, the Office of Rail and Road highlighted that Trainline and six other third-party sellers were not upfront about certain fees. Virgin Atlantic’s inquiry focuses on whether mandatory resort fees and local taxes are properly included in the initial prices displayed to customers booking package holidays, with additional costs potentially reaching hundreds of pounds. Similarly, RED Driving School is being investigated regarding whether compulsory booking and digital fees—sometimes exceeding £7 per lesson—are clearly disclosed at the start of the booking process. Earlier in the year, the CMA required two other driving schools to refund over 80,000 customers who were not informed about the full cost of lessons when booking online.
Emma Cochrane, the CMA’s Executive Director for Consumer Protection, stressed the importance of clear pricing, stating, “The first price customers see should be the price they pay.” She added that particularly during times of financial pressure on households, it is crucial that consumers are not caught off guard by additional fees when booking travel or lessons.
The companies under investigation responded by reaffirming their dedication to transparency. Virgin Atlantic Holidays stated it takes its responsibilities seriously, noting that mandatory fees are indicated at various points during the booking journey and that it will collaborate fully with the CMA. Trainline also highlighted its efforts to improve the clarity of fees and expressed ongoing engagement with the CMA. RED Driving School expressed disappointment at being included in the investigation but maintained its commitment to transparency and adherence to consumer law.
Since the previous year, the CMA has had the authority to declare breaches of consumer law without resorting to court proceedings. Consumer rights organization Which? urged the CMA not to hesitate in using these powers, particularly since the firms had already been warned previously. Sue Davies, head of consumer rights policy at Which?, remarked that the Prime Minister’s recent remarks against unfair pricing reflect the regulators’ intention to ensure businesses comply with the rules. She emphasized the necessity of protecting consumers, especially when budgets are tight, assuring them that the regulator is prepared to act against exploitative practices
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