The UK’s Competition and Markets Authority (CMA) has opened formal probes into Trainline, Virgin Atlantic and RED Driving School over suspected breaches of consumer protection rules on drip pricing.
The regulator’s executive director for consumer protection, Emma Cochrane, said the investigations focus on whether mandatory charges were separated from headline prices or added later in the purchase process rather than disclosed upfront. All three companies had previously received advisory letters from the CMA reminding them of their obligations under consumer law.
Trainline is being examined over whether its app and website included all mandatory fees in upfront prices for train and coach tickets. The CMA noted transaction fees ranging from £0.59 to £2.79 for train travel and a £1.50 booking fee for coach bookings. Virgin Atlantic faces scrutiny over whether mandatory resort fees and local taxes were included in upfront prices for package holidays, which can total hundreds of pounds. RED Driving School is under investigation for displaying a mandatory booking fee and digital fee of £7 or more per booking for driving lessons.
The CMA has not reached any conclusions on potential violations. If breaches are found, the regulator could order companies to compensate affected customers and impose fines of up to 10% of global turnover. The investigations form part of the CMA’s enforcement work under strengthened consumer powers introduced in recent years.
Since these powers took effect, the CMA has secured over £1.95 million in refunds for UK consumers and levied fines close to £6.2 million across various sectors, the regulator said.
