CMA investigates Trainline, Virgin Atlantic and RED Driving School over 'drip pricing' concerns

The UK's Competition and Markets Authority (CMA) has launched investigations into three companies over concerns they may be engaging in 'drip pricing' - a practice where mandatory fees are not included in the initial price shown to customers. The watchdog is examining Trainline, Virgin Atlantic and RED Driving School for potentially misleading consumers about the true cost of their services.

The CMA has the power to fine companies or order them to compensate customers if it finds they have broken consumer laws. All three companies have stated their commitment to transparency and pledged to cooperate fully with the investigation.

## Alleged drip pricing practices

The CMA has identified specific concerns with each company:

| Company | Alleged hidden fees | Potential impact | |---|---|---| | Trainline | Up to £2.79 on train fares, £1.50 on coach bookings | Can add up for frequent travellers | | Virgin Atlantic | Resort fees and local taxes (up to hundreds of pounds) | Significantly increases holiday costs | | RED Driving School | Booking fees and digital fees (over £7 per lesson) | Increases cost of driving lessons |

Trainline has faced similar accusations before. In 2023, the Office of Rail and Road found that Trainline and six other third-party ticket sellers were not being transparent about fees.

Earlier this year, the CMA ordered two other driving schools to refund over 80,000 customers for not disclosing total lesson prices upfront.

## Industry response

Emma Cochrane, the CMA's executive director for consumer protection, emphasized the importance of transparent pricing: "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."

Virgin Atlantic Holidays stated they take customer responsibility "incredibly seriously" and that mandatory fees are indicated at multiple stages of booking. They will cooperate fully with the investigation.

Trainline said they are committed to transparent pricing and have been engaging with the CMA for several months to improve fee presentation.

RED Driving School expressed disappointment at being included in the investigation but reaffirmed their commitment to transparency and consumer satisfaction.

Consumer rights group Which? urged the CMA to use its powers decisively, especially as each firm had already received warning letters. Sue Davies from Which? welcomed the investigation, stating it sends a clear message to businesses about following consumer protection rules.