The UK consumer watchdog is investigating Trainline, Virgin Atlantic Holidays, and RED Driving School over concerns that mandatory fees are hidden from customers until the final stage of booking.
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The Competition and Markets Authority opened investigations into Trainline, Virgin Atlantic Holidays, and RED Driving School over concerns they are not showing full prices upfront.
The regulator is examining whether the three companies engaged in drip pricing, an illegal practice where mandatory fees are left out of the headline price shown to customers. If the CMA concludes that the firms broke the law, it can impose fines or order them to compensate customers.
Trainline and Virgin Atlantic said they were committed to transparency and would cooperate fully with the investigation.
On Trainline, the CMA said it observed fees of up to £2.79 added onto headline train fares and up to £1.50 for coach bookings. "Both are costs that can add up for frequent travellers," the regulator said. Trainline has faced similar accusations before. In 2023, the Office of Rail and Road said the company and six other third-party 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.
The watchdog is also looking into whether RED Driving School included mandatory booking fees and digital fees in the upfront price shown to people buying driving lessons. The CMA said the fees could be more than £7 per lesson. Earlier this year, the regulator ordered two other driving schools to give refunds to more than 80,000 customers after they did not disclose the total price for lessons upfront during the online booking process.
Emma Cochrane, the CMA's executive director for consumer protection, said: "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 when booking train and coach tickets, holidays or driving lessons."
A Virgin Atlantic Holidays spokesperson said: "We take our responsibility to customers incredibly seriously and we always want to ensure they can make an informed decision when booking a holiday with us. Mandatory fees are indicated at multiple stages throughout the booking journey. We are reviewing the points raised by the CMA carefully and will cooperate fully with its investigation."
A Trainline spokesperson said the company was "committed to offering customers a transparent booking experience with clear pricing and genuine value. We've proactively engaged with the CMA over several months and we are taking proactive steps to enhance how certain fees are presented to our customers."
RED Driving School has been contacted for comment.
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