The Competition and Markets Authority (CMA) has confirmed formal investigations into Trainline, Virgin Atlantic and Red Driving School over concerns that customers were not shown full prices upfront. If the companies are found to have broken the law, affected consumers could receive compensation, the regulator said.
Drip pricing concerns
The CMA said the investigations focus on practices where mandatory charges are separated from the headline price or added later in the buying process, a practice known as drip pricing. This can leave shoppers facing unexpected costs or having to calculate the total cost of a purchase themselves.
“Such practices can also impact competition between businesses, as a firm using drip pricing may falsely appear to be cheaper than a competitor and attract more customers,” the CMA added.
Regulator's statement
Emma Cochrane, executive director for consumer protection at the CMA, said: “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.”
Company responses
A Trainline spokesman said: “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.”
A Virgin Atlantic Holidays spokesman said: “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 co-operate fully with its investigation.”
The investigations cover drivers, train passengers and airline holidaymakers, and the CMA's findings could lead to compensation for consumers if breaches are confirmed.
