The Competition and Markets Authority (CMA) has announced it is investigating Trainline, Virgin Atlantic and Red Driving School over concerns that customers have not been shown full prices upfront - known as drip pricing.
Many Scots across the country use Trainline regularly to buy tickets for their daily commute or for trips to events, while Virgin Atlantic operates direct flights to Orlando from Edinburgh Airport. Meanwhile, Red Driving School provides lessons across the country, including Inverness, Glasgow, Fife, and Stirling.
Drip pricing crackdown
The CMA's investigation is part of a wider crackdown over misleading pricing practices. This is said to include drip pricing where mandatory charges are separated from the headline price or added later in the buying process. This means shoppers could be hit with unexpected costs or have to calculate the total cost of the purchase themselves.
If any of the three companies are found to have broken the law then affected consumers could be entitled to compensation.
The CMA added: "Such practices can also impact competition between businesses, as a firm using drip pricing may falsely appear to be cheaper than a competitor and attract more customers."
Trainline and Virgin Atlantic investigations
For Trainline, the investigation focused on both the app and website. The CMA is looking into whether all mandatory fees are displayed upfront to travellers who are purchasing train and coach tickets in advance. The agency states that it has observed transactions with additional fees ranging from 50p to £2.79. A £1.50 booking fee has also been seen for coach journeys.
A spokesperson from Trainline said: "Trainline is committed to offering customers a transparent booking experience with clear pricing and genuine value. We’ve proactively engaged with the CMA over several months and we are taking proactive steps to enhance how certain fees are presented to our customers. We will continue engaging with the CMA to address their questions."
Meanwhile, the investigation into Virgin Atlantic is centering around mandatory resort fees and local taxes that come into play for package holidays. The airline has stated that mandatory fees are indicated throughout the booking process and that the business takes its responsibility to customers "incredibly seriously". A spokesperson has confirmed that Virgin Atlantic is cooperating fully with the investigation.
Red Driving School probe
Finally, Red Driving School is being investigated over how a mandatory booking fee and a "digital fee" are displayed for driving lessons. This typically costs £7.
Emma Cochrane, executive director for consumer protection at the CMA, said: "Clear pricing helps people compare offers confidently and choose the option that works best for them. 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."
