Trainline, Virgin Atlantic and RED Driving School investigated over 'drip pricing'
The consumer watchdog said they were trying to find out if the three companies were not showing full prices upfront to customers.
The Competition and Markets Authority (CMA) is investigating Trainline, Virgin Atlantic, and RED Driving School for alleged drip pricing practices. The watchdog is examining whether the companies are not showing full prices upfront to customers, a practice that is illegal. If found guilty, the companies could face fines or be ordered to compensate customers.
Trainline and Virgin Atlantic expressed commitment to transparency and readiness to cooperate with the CMA's investigation. In the case of Trainline, the CMA observed fees of up to £2.79 being added to train fares and £1.50 for coach bookings. Virgin Atlantic is being investigated regarding mandatory resort fees and local taxes in package holidays, which can increase holiday costs significantly.
RED Driving School is under scrutiny for including mandatory booking fees and digital fees in the upfront price shown to customers buying driving lessons, which could exceed £7 per lesson. The CMA emphasized the importance of customers seeing the first price as the final price, especially during times when households are vigilant about every pound spent.
Virgin Atlantic stated that they take responsibility for customers seriously and are reviewing the CMA's points. Trainline committed to offering a transparent booking experience, while RED Driving School has been asked for a comment.
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