All power to the UK competition watchdog’s war on ‘drip pricing’
Competition and Markets Authority on message with PM’s planned purge of hidden fees and add-on charges Trainline, Virgin Atlantic and Red Driving School face investigation The Competition and Markets Authority (CMA) is on-message with Andy Burnham’s declaration of war on the small – and sometimes not-so-small – hassles and expenses of everyday consumer life created by companies’ underhand and…
The Competition and Markets Authority (CMA) is actively pursuing companies accused of deceptive pricing practices, colloquially known as "drip pricing." This new strategy is part of Prime Minister Andy Burnham's broader campaign to combat hidden fees and additional charges that frustrate consumers on a daily basis. Trainline, Virgin Atlantic, and Red Driving School are currently the subjects of the CMA's scrutiny, all for alleged breaches of transparency in pricing.
The prime minister's involvement in this matter is strictly observational, as the CMA has been on this mission long before Burnham's tenure. The Digital Markets, Competition, and Consumers Act of 2024 played a pivotal role in empowering the CMA with direct enforcement capabilities, eliminating the need for judicial intervention in consumer protection cases. This legislation was originally enacted during the previous Conservative administration.
Notably, the CMA has already taken action against several entities. In November alone, eight investigations were initiated, resulting in fines for firms such as driving schools AA and BSM, and the ticketing website StubHub UK. The CMA's relentless focus on combating misleading pricing tactics underscores its commitment to ensuring fair market practices and protecting consumer interests.
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