The BBC reported that the Competition and Markets Authority (CMA) is investigating Trainline, Virgin Atlantic and RED Driving School over concerns that they are not showing full prices upfront to customers. The watchdog is examining whether the three companies engaged in "drip pricing," an illegal practice where mandatory fees are not included in the headline price shown to customers.
CMA Opens Drip Pricing Investigation
The CMA is examining whether Trainline, Virgin Atlantic and RED Driving School breached consumer protection rules by not displaying full prices upfront, the BBC reported. If the CMA concludes that the firms have broken the law, it can fine them or order them to compensate customers.
The investigations relate to rail and coach ticketing, package holidays and driving lessons. The CMA said customers should pay the price they see, with Emma Cochrane, its executive director for consumer protection, saying:
"The first price customers see should be the price they pay. 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."
Alleged Fees by Company
The CMA said it observed fees of up to £2.79 being added onto headline train fares sold by Trainline, and up to £1.50 for coach bookings. "Both are costs that can add up for frequent travellers," the CMA said.
Trainline has been accused of drip pricing before: in 2023, the Office of Rail and Road said Trainline and six other third-party train ticket sellers were not being upfront about fees, according to the BBC.
| Company | Fee type | Amount |
|---|---|---|
| Trainline | Fees on headline train fares | Up to £2.79 |
| Trainline | Fees on coach bookings | Up to £1.50 |
| RED Driving School | Booking fees and digital fees | More than £7 per lesson |
| Virgin Atlantic | Resort fees and local taxes on package holidays | Up to hundreds of pounds |
The CMA is investigating whether Virgin Atlantic included mandatory resort fees and local taxes in the upfront prices shown to customers buying package holidays. The regulator said these fees vary but can go up to hundreds of pounds, significantly increasing the cost of a holiday.
The watchdog is also looking into whether RED Driving School included mandatory booking fees and digital fees in the upfront price shown to people buying driving lessons. The CMA said fees could be more than £7 per lesson.
Company Responses
Trainline and Virgin Atlantic said they were committed to transparency for customers and would engage fully with the CMA, the BBC reported. A Trainline spokesperson said the company was "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."
A spokesperson for Virgin Atlantic Holidays 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 cooperate fully with its investigation."
RED Driving School has been contacted for comment, the BBC reported.
Precedent and Next Steps
The investigation follows earlier CMA action against two other driving schools: the regulator said it ordered them to give refunds to more than 80,000 customers earlier this year after they did not disclose the total price for lessons upfront during the online booking process.
If the CMA finds breaches in the current probes, the companies face potential fines or orders to compensate customers. Trainline and Virgin Atlantic have said they will cooperate with the investigation, while RED Driving School's position is still awaited.
Sources:
