The UK's Competition and Markets Authority (CMA) has launched an investigation into Trainline, Virgin Atlantic, and RED Driving School over concerns that they are not showing the full price upfront to customers, a practice known as 'drip pricing'. The CMA is examining whether these companies are breaking consumer protection law by adding mandatory fees at the end of the booking process.
According to the CMA, drip pricing can mislead consumers and prevent them from comparing prices effectively. The investigation will look into whether the companies are transparent about the total cost from the start, or if they add unavoidable charges such as booking fees or card fees only at the final stage of a transaction.
Trainline, a leading digital rail ticket platform, and Virgin Atlantic, a major airline, have both been contacted by the CMA. RED Driving School, one of the UK's largest driving instructor networks, is also under scrutiny. The companies have not yet publicly commented on the investigation.
The CMA has previously taken action against other sectors for drip pricing, and this investigation is part of a broader crackdown on hidden fees. The outcome could lead to legally binding commitments or court action if breaches are found.
