The Competition and Markets Authority (CMA) has initiated three new consumer protection investigations into Trainline, Virgin Atlantic, and RED Driving School. The probes focus on whether these companies displayed the total price upfront to customers.
The CMA is examining if Trainline included all mandatory fees in upfront prices for train and coach tickets, with observed fees ranging from £0.59 to £2.79 for train travel and a £1.50 booking fee for coach bookings. Virgin Atlantic is under investigation regarding whether mandatory resort fees and local taxes were included in upfront prices for package holidays. For RED Driving School, the CMA is looking into how mandatory booking fees and 'digital' fees, which can exceed £7 per booking, were displayed.
These investigations are part of a broader CMA effort against misleading pricing practices, specifically 'drip pricing', where mandatory charges are added later in the buying process. Emma Cochrane, Executive Director for Consumer Protection at the CMA, stated that clear pricing helps consumers compare offers confidently and that unexpected mandatory charges make this difficult.
The CMA has not yet reached conclusions on whether any laws have been broken. If infringements are found, the CMA has the power to order businesses to pay compensation to affected customers and impose fines of up to 10% of global turnover.