Trainline, Virgin Atlantic and RED Driving School investigated over illegal 'drip pricing' by UK watchdog

The UK's Competition and Markets Authority (CMA) has opened investigations into Trainline, Virgin Atlantic and RED Driving School over concerns they are engaging in illegal "drip pricing" — a practice where mandatory fees are not included in the headline price shown to customers.

In the case of Trainline, the CMA said it observed fees of up to £2.79 being added on to headline train fares, and up to £1.50 for coach bookings. Virgin Atlantic is being investigated to see whether mandatory resort fees and local taxes were included in the upfront prices shown to customers buying package holidays; these fees can run to hundreds of pounds. RED Driving School is under scrutiny over whether mandatory booking and digital fees exceeding £7 per lesson were disclosed upfront.

Emma Cochrane, the CMA's executive director for consumer protection, said: "The first price customers see should be the price they pay. At a time when many households are watching every pound they spend, it is important that people are not surprised by extra fees when booking train and coach tickets, holidays or driving lessons."

The CMA gained powers last year to rule that consumer laws have been broken without taking businesses to court — it can fine companies or order them to compensate customers. Consumer rights group Which? urged the watchdog to use these powers without hesitation.

Trainline said it was "committed to offering customers a transparent booking experience" and was taking "proactive steps to enhance how certain fees are presented". Virgin Atlantic said it "always wants to ensure" customers can make an informed decision. RED Driving School did not immediately comment.

Prime Minister Burnham said last week that "unfair pricing practices have no place in our economy", a comment Which? said sent a clear signal to businesses to follow the rules.