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

The UK Competition and Markets Authority (CMA) has launched formal investigations into Trainline, Virgin Atlantic, and RED Driving School regarding potential misleading pricing practices. The regulator is examining whether these companies use ‘drip pricing,’ a practice where mandatory charges are separated from the headline price or added later in the booking process.

The investigation into Trainline focuses on whether mandatory fees for train and coach bookings—ranging from 50p to £2.79—are displayed upfront. Virgin Atlantic is being scrutinized over whether resort fees and local taxes, which can significantly increase the cost of package holidays, are included in the initial price shown to customers. RED Driving School is under investigation concerning the display of mandatory booking and digital fees, typically exceeding £7 per booking.

These probes follow previous advisory letters sent by the CMA to the firms. Under its current enforcement powers, the regulator can impose fines of up to 10% of a company’s global turnover and mandate compensation for affected consumers if infringements are proven.