The Competition and Markets Authority has initiated formal investigations against three major UK companies—Trainline, Virgin Atlantic, and Red Driving School—following concerns that their pricing practices violated consumer protection regulations.
The investigations focus on “drip pricing,” an illegal technique where businesses present artificially low initial prices by withholding mandatory charges until later in the purchasing process. Customers discovered that the total cost only became apparent after fees were added at checkout for train and coach tickets, holiday bookings, and driving lessons. Emma Cochrane, the CMA’s executive director for consumer protection, emphasized that customers should see the full price upfront to enable informed shopping decisions.
Trainline acknowledged ongoing engagement with the regulator and stated it was implementing improvements to how certain fees are presented to consumers. The announcement triggered a significant market reaction, with Trainline’s share price declining by up to 14% in early trading. Virgin Atlantic noted that mandatory fees were shown at multiple stages of the booking process but indicated it would cooperate with the investigation. Red Driving School similarly expressed commitment to transparency and willingness to engage with authorities.
These investigations represent part of an expanded enforcement effort enabled by consumer protection powers granted to the CMA during the preceding year. Under these new authorities, the regulator can independently determine legal violations without court proceedings. Penalties for substantiated breaches can include compensation orders for affected consumers and financial fines reaching up to 10% of a company’s global revenue.
The CMA has previously pursued similar cases, ordering ticket platform StubHub to refund customers approximately £1.5m and issuing a £4.2m fine to the AA while requiring additional customer repayment over drip pricing violations.
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