The UK's Competition and Markets Authority (CMA) has launched investigations into Trainline, Virgin Atlantic, and Red Driving School. The watchdog is concerned that these companies may have displayed misleadingly low prices to customers.
These investigations are part of a wider effort to tackle "drip pricing," which is an illegal practice. Drip pricing makes a product appear cheaper by not including all mandatory fees upfront.
The CMA stated its concerns that customers were not shown the total price initially when purchasing train and coach tickets, holidays, or driving lessons. Emma Cochrane, the executive director for consumer protection at the CMA, said that "The first price customers see should be the price they pay."
Trainline has stated it has been engaging with the CMA and is taking steps to improve the presentation of certain fees. Virgin Atlantic indicated that mandatory fees are shown at multiple stages of booking and that it will cooperate with the regulator. Red Driving School was approached for comment.
The CMA is using new consumer protection powers, granted last year, which allow it to determine if consumer laws have been broken without needing to go through the courts. If an infringement is found, the CMA can order businesses to pay compensation to affected customers and issue fines up to 10% of their global turnover.