Key facts
- The UK's Competition and Markets Authority (CMA) is investigating Trainline, Virgin Atlantic, and RED Driving School for 'drip pricing'.
- The probe concerns allegations that mandatory fees were not clearly displayed upfront, making prices appear lower than they are.
- Trainline faces scrutiny over mandatory fees ranging from 59p to £2.79.
- Virgin Atlantic is being investigated for potentially not including resort fees and local taxes in upfront holiday prices.
- RED Driving School is examined for mandatory booking and digital fees.
- The CMA is using new direct enforcement powers under the Digital Markets, Competition and Consumers Act 2024.
The UK's Competition and Markets Authority (CMA) has launched investigations into Trainline, Virgin Atlantic, and RED Driving School over concerns that the companies engaged in 'drip pricing'. This practice involves advertising a low headline price but adding mandatory fees later in the booking process, potentially misleading consumers. Trainline is under scrutiny for mandatory fees ranging from 59p to £2.79, while Virgin Atlantic faces investigation for potentially not including resort fees and local taxes in initial holiday prices. RED Driving School is being examined for its mandatory booking and digital fees. These investigations mark the first use of new direct enforcement powers granted to the CMA under the Digital Markets, Competition and Consumers Act 2024, allowing the regulator to act without court proceedings. Previously, the CMA fined StubHub £1.5 million and the AA £4.2 million for similar drip pricing violations. Emma Cochrane, executive director for consumer protection at the CMA, stated that clear pricing is essential for consumers to compare offers confidently and that unexpected mandatory charges hinder this process.