The Competition and Markets Authority (CMA) has launched investigations into Trainline, Virgin Atlantic and RED Driving School over concerns that customers were not shown the total price upfront when buying train and coach tickets, holidays or driving lessons.
Consumers face unexpected costs or have to calculate total costs themselves as businesses use drip pricing, in which mandatory charges are separated or added later in the buying process. The CMA is investigating Trainline over concerns that all mandatory fees may not have been included in upfront prices for customers buying train and coach tickets in advance on the Trainline app and website.
Additional Fees and Charges
The authority has found that transactions had additional fees ranging from £0.59 to £2.79 for trains and a £1.50 booking fee for coach travel. The investigation into Virgin Atlantic will focus on whether compulsory resort fees and local taxes have been included in the upfront prices shown to customers buying package holidays with the airline. These fees vary but can cost hundreds of pounds and significantly increase the price of a holiday.
Within the investigation, the CMA will look at how a mandatory booking fee and ‘digital’ fee have been displayed to people booking driving lessons with RED Driving School. Specifically, whether the fees of £7 and above per booking have been included in the total price.
CMA Statement and Potential Consequences
Trainline, Virgin Atlantic and RED Driving School have been sent advisory letters, however the CMA "remains concerned about their pricing practices following ongoing monitoring." Emma Cochrane, executive director for consumer protection at the CMA, said: "At a time when many households are watching every pound they spend, it is important that people are not surprised by extra fees when booking train and coach tickets, holidays or driving lessons.
"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.
"The first price customers see should be the price they pay." If the investigations find that the companies have broken the law, the CMA can order businesses to pay compensation to affected customers, as well as fining companies up to 10% of global turnover.
