The Competition and Markets Authority has launched investigations into three major consumer-facing companies over allegations they engaged in drip pricing, an illegal practice where mandatory fees are withheld from initial price quotes shown to customers.
Trainline faces scrutiny for potentially adding fees of up to £2.79 to train fares and £1.50 to coach bookings after customers see headline prices. Virgin Atlantic is being examined regarding whether mandatory resort fees and local taxes were included in upfront holiday package prices, which the regulator noted can exceed several hundred pounds. RED Driving School is under investigation for allegedly failing to disclose mandatory booking and digital fees—which can exceed £7 per lesson—before customers complete their bookings.
The CMA stated it has authority to conclude whether these firms violated consumer laws without requiring court proceedings, having gained this power earlier this year. In a separate enforcement action, the regulator previously ordered two other driving schools to issue refunds to more than 80,000 customers for similar pricing disclosure violations. Emma Cochrane, the CMA’s executive director for consumer protection, emphasized that the initial price displayed to customers should match what they ultimately pay, particularly given current household budget constraints.
Both Trainline and Virgin Atlantic issued statements affirming their commitment to pricing transparency and pledging cooperation with the investigation. Trainline acknowledged it has proactively engaged with the CMA over several months and indicated it is taking steps to improve how fees are presented. Consumer advocacy group Which? called on the CMA to exercise its enforcement powers decisively given that both companies had previously received warning letters regarding these practices.
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