Trainline and two others probed over drip pricing
UK competition watchdog investigates Trainline, Virgin Atlantic, and RED Driving School over hidden mandatory fees.
Stock photo for illustration only, not from the actual event
- CMA investigates Trainline, Virgin Atlantic, and RED Driving School
- Probe focuses on hidden mandatory fees revealed late in booking
- Firms face potential fines or compensation orders if laws broken
The UK consumer watchdog is actively investigating Trainline, Virgin Atlantic, and RED Driving School over concerns that these three companies fail to display the complete upfront prices to their customers. The Competition and Markets Authority is examining whether these businesses have engaged in drip pricing, an illegal practice where mandatory fees are intentionally excluded from the headline prices initially shown to buyers.
Should the CMA conclude that these firms have breached consumer protection laws, it holds the power to impose financial penalties or order them to issue customer compensation. Representatives from all three companies have stated their commitment to customer transparency and confirmed they will cooperate fully with the ongoing regulatory investigation.
Stock photo for illustration only, not from the actual event
Focusing on Trainline, the CMA noted it observed additional fees of up to £2.79 being tacked onto headline train fares, along with up to £1.50 extra for coach bookings. The watchdog emphasized that these are costs that accumulate quickly for frequent travellers. Trainline has previously faced similar scrutiny; back in 2023, the Office of Rail and Road reported that Trainline alongside six other third-party ticket sellers were not being upfront regarding booking fees.
Meanwhile, Virgin Atlantic is under investigation to determine whether mandatory resort fees and local taxes were properly included in the headline package holiday prices presented to buyers. The CMA highlighted that these varying fees can surge into the hundreds of pounds, substantially inflating the total vacation cost. Furthermore, the watchdog is reviewing whether RED Driving School factored mandatory booking and digital fees into the upfront pricing displayed to people purchasing driving lessons, noting that these extra charges could exceed £7 per single lesson.
"The first price customers see should be the price they pay."
Emma Cochrane, CMA executive director for consumer protection
Emma Cochrane, the executive director for consumer protection at the CMA, stated that at a time when numerous households monitor every pound they spend, people must not be caught off guard by extra fees when booking travel or lessons. Since last year, the CMA has possessed direct powers to rule on consumer law breaches without dragging businesses through court. Consumer advocacy group Which? urged the regulator to utilize these powers decisively, especially since each firm already received a prior warning advisory letter.
Drip pricing distorts the digital marketplace by trapping consumers with artificially low headline prices before hitting them with mandatory fees at the final checkout stage. The CMA's aggressive approach, backed by recent regulatory enforcement powers, demonstrates a zero-tolerance stance against unfair online practices in the UK economy, forcing travel and service providers to adopt total price transparency.
Source: BBC Business
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