Trainline, Virgin Atlantic and RED Driving School investigated over 'drip pricing'

Trainline, Virgin Atlantic and RED Driving School are under investigation by the Competition and Markets Authority over possible drip pricing practices. The CMA is examining whether the three firms failed to display mandatory fees in the headline prices shown to customers. If the authority finds a breach of consumer law, it can impose fines or order compensation. In the case of Trainline, the CMA said it observed additional charges of up to £2.79 added to standard fares and up to £1.50 for manager bookings. The authority noted that these costs can accumulate for frequent travellers. Trainline has faced similar allegations before; in 2023 the Office of Rail and Road reported that the company and six other third‑party ticket sellers were not transparent about fees. Virgin Atlantic is being reviewed to determine whether mandatory hotel fees and local taxes were included in the upfront prices presented to customers purchasing package holidays. The CMA said these charges can vary but may reach hundreds of pounds, substantially increasing the total cost of a holiday. RED Driving School is under scrutiny for possibly omitting mandatory booking and service fees from the prices shown to people buying driving lessons. The CMA indicated that such fees could exceed £7 per lesson. Earlier this year the CMA ordered two other driving schools to refund more than 80,000 customers after they failed to disclose the full cost of lessons during the online booking process. Emma Cochrane, the CMA’s enforcement manager for consumer protection, stated: "The archetypal terms customers spot should beryllium the terms they pay." She added: "At a clip erstwhile galore households are watching each lb they spend, it is important that radical are not amazed by other fees erstwhile booking bid and manager tickets, holidays oregon driving lessons." A spokesperson for Virgin Atlantic Holidays said the company takes its responsibility to customers "incredibly seriously", adding: "we ever privation to guarantee they tin marque an informed determination erstwhile booking a vacation with us. "Mandatory fees are indicated astatine aggregate stages passim the booking journey. We are reviewing the points raised by the CMA cautiously and volition cooperate afloat with its investigation." A Trainline spokesperson said the firm is "committed to offering customers a transparent booking acquisition with wide pricing and genuine value." The spokesperson continued: "We've proactively engaged with the CMA implicit respective months and we are taking proactive steps to heighten however definite fees are presented to our customers." RED Driving School has been approached for comment. Since last year the CMA has had the authority to rule that consumer laws have been breached without taking businesses to court. Consumer rights group Which? argued that the regulator should not hesitate to use these powers, "especially aft each steadfast has already received a informing advisory letter"." Sue Davies, head of consumer rights policy at Which?, said: "Following comments made by the Prime Minister past week that unfair pricing practices person nary spot successful our economy, this determination sends a wide connection to different businesses to travel the rules." She concluded: "At a clip erstwhile household budgets are nether strain, consumers indispensable person assurance that businesses aren't determination to rip them disconnected and that the regulator is consenting to measurement successful to support their rights."