Trainline, Virgin Atlantic and RED Driving School Investigated over ‘Drip Pricing’
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Trainline, Virgin Atlantic and RED Driving School are being investigated by the consumer watchdog over concerns they are not showing full prices upfront to customers.
The Competition and Markets Authority (CMA) is examining whether the three companies engaged in so-called ‘drip pricing’, which is an illegal practice where mandatory fees are not included in the headline price shown to customers.
If found guilty, the firms face fines or orders to compensate customers.
Trainline and Virgin Atlantic have both stated their commitment to transparency and will fully cooperate with the CMA’s investigation.
In 2023, Trainline faced similar accusations from the Office of Rail and Road, which found that they, along with six other third-party train ticket sellers, were not being transparent about fees.
The CMA found that Trainline added up to £2.79 in fees on top of headline train fares and up to £1.50 for coach bookings.
Virgin Atlantic is under scrutiny for failing to include mandatory resort fees and local taxes in the upfront prices shown to customers booking package holidays, which can amount to hundreds of pounds.
The watchdog is also looking into whether RED Driving School includes mandatory booking fees and digital fees in their initial displayed price for driving lessons, which could be more than £7 per lesson.
This follows an order from the CMA earlier this year, compelling two other driving schools to refund over 80,000 customers after they failed to disclose total lesson prices upfront during online bookings.
Emma Cochrane, the CMA’s executive director for consumer protection, emphasized: “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…”
A spokesperson for Virgin Atlantic Holidays confirmed their commitment to customer responsibility and indicated that mandatory fees are disclosed at multiple stages during the booking process. They promised to cooperate fully with the CMA’s investigation.
Trainline stated they are taking proactive steps to enhance fee presentation to customers after engaging with the CMA over several months.
RED Driving School has not yet provided a comment.
