The Competition and Markets Authority (CMA) has launched investigations into Trainline, Virgin Atlantic and RED Driving School over concerns that customers may not have been shown the full price upfront when making online bookings.
The investigations form part of the regulator’s scrutiny of online pricing practices, including so-called “drip pricing”, where mandatory charges are separated from the headline price or added later in the purchasing journey.
The investigations are at an early stage and the CMA has stressed that it has not yet reached any conclusions on whether consumer law has been broken.
Trainline investigated over booking fees
The CMA is investigating whether all mandatory fees were included in the upfront prices displayed to customers purchasing train and coach tickets through Trainline’s website and app.
The regulator identified train transactions where additional booking fees ranged from £0.59 to £2.79, while coach bookings could include a £1.50 booking fee.
A Trainline spokesperson told Commerce Voice:
“Trainline is committed 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. We will continue engaging with the CMA to address their questions.”
Virgin Atlantic holiday pricing under scrutiny
Virgin Atlantic is being investigated over the pricing of package holidays, with the CMA examining whether mandatory resort fees and local taxes were included in the upfront prices shown to customers.
The additional charges can vary and, in some cases, add hundreds of pounds to the total cost of a holiday.
RED Driving School is also being investigated over the way mandatory booking and digital fees are displayed to customers booking driving lessons. The CMA is examining whether a £7 fee was included in the total upfront price.
Emma Cochrane, Executive Director for Consumer Protection at the CMA, said:
“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.
“Clear pricing helps people compare offers confidently and choose the option that works best for them. Unexpected mandatory charges make this much harder, which is why the CMA initially put these firms on notice over concerns about their pricing practices and is now opening formal investigations.
“The first price customers see should be the price they pay.”
The investigations are being conducted using the CMA’s strengthened consumer protection powers.
If the regulator ultimately finds that consumer law has been breached, it can order businesses to compensate affected customers and impose fines of up to 10% of global turnover.
Commerce Voice has contacted Virgin Atlantic and RED Driving School for comment.
