Britain’s competition regulator has launched formal investigations into Trainline, Virgin Atlantic, and Red Driving School over concerns that customers were not shown full prices upfront. The Competition and Markets Authority (CMA) is examining whether these companies broke consumer laws by using drip pricing tactics that hide mandatory fees until the final stages of a transaction.
Hidden fees for passengers and learners
The CMA investigation into Trainline will focus on whether all mandatory fees were displayed to travelers buying train and coach tickets in advance on its app and website. The regulator found transactions where additional fees ranged from 59p to £2.79, including a £1.50 booking fee for coach journeys. Virgin Atlantic is being investigated over mandatory resort fees and local taxes for package holidays, while Red Driving School faces scrutiny regarding a mandatory booking fee and a digital fee typically costing £7 per lesson.
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Such practices, known as drip pricing, can mislead consumers. When mandatory charges are separated from the headline price or added later in the buying process, shoppers could end up facing unexpected costs or have to calculate the total price themselves. A firm using these tactics may falsely appear cheaper than a competitor and attract more customers, according to the CMA.
It is unusual for digital platforms to hide fees until the end of a transaction, a behavior more commonly associated with traditional travel agencies. This disconnect between the advertised price and the final cost creates friction that modern users generally expect to be resolved through automation and upfront transparency.
Firms respond to regulator
Consumers affected by these practices could be eligible for compensation if it is found that the companies broke the law, the regulator stated. All firms under investigation were sent ‘advisory letters’ as part of the CMA’s first consumer protection drive using its new enforcement powers. These letters put the businesses on notice and reminded them of their obligations under consumer law, though the CMA said it remained concerned about their pricing practices following ongoing monitoring.
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Emma Cochrane, executive director for consumer protection at the CMA, said: ‘Clear pricing helps people compare offers confidently and choose the option that works best for them. Unexpected mandatory charges make this much harder, which is why the CMA initially put these firms on notice over concerns about their pricing practices and is now opening formal investigations.’
Trainline and Virgin Atlantic Holidays have responded to the scrutiny. A Trainline spokesman said the company is committed to offering a transparent booking experience with clear pricing and genuine value. The firm stated it has proactively engaged with the CMA over several months and is taking steps to enhance how certain fees are presented to customers. A Virgin Atlantic Holidays spokesman said mandatory fees are indicated at multiple stages throughout the booking journey and that the company is reviewing the points raised by the CMA carefully to co-operate fully with the investigation.
