Trainline, Virgin Atlantic and RED Driving School investigated over 'drip pricing'

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 the CMA concludes that the firms have broken the law, it can fine them or order them to compensate customers.

Trainline and Virgin Atlantic said they were committed to transparency for customers and would engage fully with the CMA.

In the case of Trainline, the CMA said it observed fees of up to £2.79 being added on to headline train fares, and up to £1.50 for coach bookings.

"Both are costs that can add up for frequent travellers," the CMA said.

Trainline has been accused of drip pricing before. In 2023, the Office of Rail and Road said it and six other third-party train ticket sellers were not being upfront about fees.

Virgin Atlantic is being investigated to see whether mandatory resort fees and local taxes were included in the upfront prices shown to customers buying package holidays. The CMA said these fees vary but can go up to hundreds of pounds, significantly increasing the cost of a holiday.