Trainline, Virgin Atlantic and RED Driving School investigated over 'drip pricing'
The consumer watchdog said they were trying to find out if the three companies were not showing full prices upfront to customers.
Trainline, Virgin Atlantic, and RED Driving School are under investigation by the consumer watchdog due to concerns that they are not displaying complete prices to customers from the outset.
The Competition and Markets Authority (CMA) is looking into whether these three companies have engaged in "drip pricing," an unlawful practice where mandatory charges are not incorporated into the initial price presented to consumers. Should the CMA determine that the firms have violated the law, it possesses the authority to impose fines or mandate customer compensation.
Both Trainline and Virgin Atlantic have affirmed their dedication to customer transparency and their full cooperation with the CMA.
Regarding Trainline, the CMA noted instances where fees of up to £2.79 were added to headline train fares, and up to £1.50 for coach bookings. The CMA commented, "Both are costs that can add up for frequent travellers." Trainline has faced previous accusations of drip pricing; in 2023, the Office of Rail and Road stated that Trainline and six other third-party train ticket vendors were not transparent about their fees.
Virgin Atlantic is being investigated to ascertain whether mandatory resort fees and local taxes were included in the upfront prices shown to customers purchasing package holidays. The CMA indicated that these fees, which can vary, may amount to hundreds of pounds, significantly increasing the overall cost of a holiday.
Furthermore, the watchdog is examining whether RED Driving School incorporated mandatory booking and digital fees into the initial price displayed to individuals buying driving lessons. The CMA reported that these fees could exceed £7 per lesson. Earlier this year, the CMA instructed two other driving schools to issue refunds to over 80,000 customers who failed to disclose the total lesson price upfront during the online booking process.
Emma Cochrane, the CMA's executive director for consumer protection, stated, "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."
A spokesperson for Virgin Atlantic Holidays commented, "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."
A Trainline spokesperson affirmed the company's commitment 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."
RED Driving School has been contacted for comment.