Trainline, Virgin Atlantic and RED Driving School investigated over hidden-fee concerns
The competition watchdog is investigating whether all three showed customers the total price upfront when booking tickets, holidays and driving lessons.
The Competition and Markets Authority (CMA) has launched investigations into Trainline, Virgin Atlantic and RED Driving School after concerns that customers were not shown the total price of their purchase upfront.
The regulator is examining whether mandatory fees – such as booking charges, resort fees and local taxes – were properly included in the headline price, or whether they were separated from the headline price or added later in the buying process, a practice known as drip pricing. If the CMA finds that any of the three broke the law, it can order them to pay compensation to affected customers, as well as fines of up to 10% of global turnover.
Emma Cochrane, executive director for consumer protection at the CMA, said:
“Clear pricing helps people compare offers confidently and choose the option that works best for them. Unexpected mandatory charges make this much harder, which is why the CMA initially put these firms on notice over concerns about their pricing practices and is now opening formal investigations.”
People should be able to trust that the price they see is the price they will actually pay.
Nikki Stopford, co-founder of Consumer Voice, said: “A headline price should tell you what you’ll really pay, not just get you through the door. Unavoidable fees that only appear later make it harder to compare deal and can leave people paying more than they expected.”
She added: “The CMA is right to and, if rules have been broken, affected customers should get their money back.”
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What each company is being investigated for
Trainline is being investigated over whether mandatory fees have been included in the upfront price shown to customers buying train and coach tickets through its app and website. The CMA says it observed train ticket transactions with fees ranging from £0.59 to £2.79, and a £1.50 booking fee on coach bookings.
Virgin Atlantic is being investigated over whether mandatory resort fees and local taxes were included in the upfront price shown to customers booking package holidays. The CMA says these fees can vary but may add hundreds of pounds to the cost of a holiday.
RED Driving School is being investigated over how a mandatory booking fee and a separate “digital” fee, amounting to £7 or more per booking, were displayed to people booking driving lessons.
All three firms were previously sent advisory letters by the CMA putting them on notice over their pricing practices, but the regulator says it remains concerned enough to now open formal investigations.
A Trainline spokesperson said the company has “proactively engaged with the CMA over several months” and is “taking steps to enhance how certain fees are presented to our customers.”
Virgin Atlantic said mandatory fees are indicated at multiple stages of its booking journey and that it would cooperate with the CMA’s investigation. RED Driving School said it was disappointed to have been included in the investigation but was working with the CMA and took its consumer law obligations seriously.
What happens now – and could customers get refunds?
The CMA is at an early stage in all three cases and has reached no conclusions about whether Trainline, Virgin Atlantic or RED Driving School have broken the law. There is no legal deadline by which consumer investigations must be completed.
The CMA expects its initial evidence-gathering stage to run until January 2027, when further updates on the cases are due.
This is part of the CMA’s wider clampdown on drip pricing using its new direct enforcement powers. The regulator has already fined AA Driving School and BSM Driving School £4.2 million and StubHub UK almost £900,000 over similar practices, with both ordered to refund affected customers.
Across its wider cost of living work – spanning ticketing, gyms, homeware, online reviews and air travel – the CMA says it has secured more than £1.95 million in refunds for consumers and issued fines totalling close to £6.2 million.
Know your rights when prices are not shown upfront
Under consumer law, the price you’re shown when deciding whether to buy should include all mandatory fees, taxes and charges that can reasonably be calculated in advance. If a mandatory charge cannot be calculated upfront, the business should clearly explain how it will be calculated.
Unavoidable charges should not be hidden or added later in the checkout process.
If you have been charged a mandatory fee that was not clearly included in the price upfront, complain to the business and ask it to put it right. Depending on the circumstances, this could include asking for the fee to be refunded.
You should also report hidden or misleading fees so Trading Standards can identify businesses that may be breaking consumer law. In England and Wales, contact the Citizens Advice consumer service. In Scotland, contact consumeradvice.scot, and in Northern Ireland, contact Consumerline. These services can provide advice and pass relevant complaints to Trading Standards for possible investigation.
For a full guide to your rights on hidden fees and drip pricing, visit our hidden fees and drip pricing guide.
Sign up to Consumer Voice for useful updates on your rights, your money and ways to get back what you’re owed.
