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CMA probes Trainline, Virgin Atlantic and Red Driving School for drip pricing
The Competition and Markets Authority flagged fees it said could add up to £2.79 on train fares, £1.50 on coach bookings, and more than £7 per driving lesson.
The UK consumer watchdog is investigating Trainline, Virgin Atlantic and RED Driving School over concerns that customers may not be shown the full price upfront, a practice described as illegal drip pricing, the BBC reported. The Competition and Markets Authority (CMA) is examining whether mandatory fees were excluded from the headline prices shown to consumers. If the CMA finds firms broke the law, it can fine them or order them to compensate customers.
In its Trainline review, the CMA said it observed fees of up to £2.79 added to headline train fares, and up to £1.50 for coach bookings. Trainline said it is committed to transparency and will engage fully with the regulator, according to the report.
For Virgin Atlantic, the CMA is looking at whether mandatory resort fees and local taxes were included in upfront prices for customers booking package holidays, with the watchdog noting the charges can vary but rise into the hundreds of pounds. For RED Driving School, the CMA is assessing whether mandatory booking fees and digital fees were included upfront, saying the fees could be more than £7 per lesson.
Earlier this year, the CMA ordered refunds for more than 80,000 customers after two other driving schools did not disclose the total lesson price upfront during online booking, the BBC added. CMA executive director for consumer protection Emma Cochrane said customers should see the price they pay first, and the companies said they would cooperate with the investigation.