The UK’s Competition and Markets Authority has launched formal investigations into three companies—Trainline, Virgin Atlantic, and Red Driving School—over concerns about misleading pricing practices. The probe focuses on allegations that customers were not shown complete price information when purchasing train and coach tickets, holidays, or driving lessons.
The investigations are part of a coordinated effort to combat “drip pricing,” an illegal practice where companies display artificially low initial prices while adding mandatory fees during the checkout process. The CMA stated that customers should see the full total cost upfront to allow for proper price comparison and informed purchasing decisions.
Trainline, which is publicly listed, acknowledged in a statement that it has been cooperating with the CMA for several months and is taking measures to improve how certain fees are presented. The company’s share price declined by up to 14% following the announcement. Virgin Atlantic stated that mandatory fees are indicated at multiple stages during booking and said it is reviewing the regulator’s concerns. Red Driving School indicated it values customer transparency and is engaging with the authority.
The CMA is employing new consumer protection powers granted last year that enable the regulator to determine independently whether consumer laws have been violated without requiring court proceedings. If violations are found, the authority can compel companies to pay customer compensation and impose fines of up to 10% of global turnover.
This action follows similar recent enforcement efforts by the CMA, including orders against ticket seller StubHub to refund nearly £1.5m and a £4.2m fine against the AA, with additional repayments to learner drivers for drip pricing violations. The investigations reflect broader government priorities regarding cost-of-living concerns.
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