The UK's competition watchdog, the Competition and Markets Authority (CMA), has initiated an investigation into Trainline, Virgin Atlantic, and RED Driving School. The probe addresses concerns that customers were not shown the total upfront price when purchasing train and coach tickets, holidays, or driving lessons.
The CMA is specifically targeting 'drip pricing', where mandatory charges are separated from the headline price or added at a later stage. All three companies have received advisory letters as part of this consumer protection drive.
Emma Cochrane, executive director for consumer protection at the CMA, stated that it is important for people not to be surprised by extra fees, especially when households are closely monitoring their spending. She added that unclear pricing makes it harder for customers to compare offers confidently, emphasising that "The first price customers see should be the price they pay."
The investigation into Trainline will focus on mandatory fees observed in transactions, which ranged from 59p to £2.79. Virgin Atlantic faces scrutiny over whether mandatory resort fees and local taxes, which can amount to hundreds of pounds, were included in the upfront prices for package holidays. RED Driving School is being investigated regarding the display of its mandatory booking and digital fees for driving lessons.
This action follows the CMA's new direct enforcement powers, which allow it to determine if consumer protection laws have been breached without court proceedings. The watchdog has stated that it is at the beginning of this new investigation and has not yet reached any conclusions on whether the firms have broken the law.