The Competition and Markets Authority (CMA) has launched investigations into Trainline, Virgin Atlantic and Red Driving School over concerns they have been using "drip pricing", which is banned in the UK.
Drip pricing is where the final price at the checkout is higher than the one originally seen, due to unavoidable fees added later on. The CMA says this means customers may have faced unexpected costs.
Trainline Fees Under Scrutiny
Trainline is being investigated over whether additional fees of up to £2.79 for train tickets, and £1.50 for coach journeys, were included in the upfront price seen by customers.
The investigation into Virgin Atlantic is looking into mandatory resort fees and local taxes for package holidays. These fees vary but can cost hundreds of pounds and significantly increase the price of a holiday.
Red Driving School Booking Fee Probe
Red Driving School is being investigated over whether a mandatory booking fee and digital fee were displayed in the upfront price for driving lessons. These fees were typically £7 per booking.
The CMA said consumers could get compensation if it finds the law has been broken. The investigation is part of a wider clampdown by the CMA over misleading pricing practices.
CMA and Which? React
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."
Sue Davies, head of consumer rights policy at Which?, said: "The CMA shouldn’t hesitate to use its new consumer enforcement powers to fine any firms that have broken the rules – especially after each firm has already received a warning advisory letter. Following comments made by the Prime Minister last week that unfair pricing practices have no place in our economy, this move sends a clear message to other businesses to follow the rules."
Company Responses
A Trainline spokesman 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."
A Virgin Atlantic Holidays spokesman said: "We take our responsibility to customers incredibly seriously and we always want to ensure they can make an informed decision when booking a holiday with us. Mandatory fees are indicated at multiple stages throughout the booking journey. We are reviewing the points raised by the CMA carefully and will co-operate fully with its investigation."
A Red Driving School spokesman said: "Red Driver Training always values both transparency and consumer satisfaction in all of our interactions with our customers. As an organisation we have been engaging with and working closely with the CMA as we take any and all of our obligations under consumer law with utmost focus and seriousness. We look forward to continued engagement to support the CMA to a swift conclusion of this investigation."
