Hidden Fee Probes
CMA Launches Formal Probes Into Trainline, Virgin Atlantic, Red Driving School Over Drip Pricing Tactics
Key Points
Trainline's pricing concerns include observed upfront charges for train bookings ranging from 59p to £2.79, and a separate £1.50 coach booking fee, indicating fees may be disclosed at different stages rather than in a single upfront total.
Virgin Atlantic is being probed over whether mandatory resort fees and local taxes were included in upfront prices for package holidays, with these fees reportedly costing hundreds of pounds and potentially inflating holiday prices.
RED Driving School faces scrutiny over whether a mandatory booking fee and a separate ‘digital’ fee (around £7+ per booking) were included in the total upfront price for driving lessons.
The CMA has previously acted against StubHub, ordering nearly £1.5 million in refunds and penalties for drip pricing, illustrating the regulator's ongoing enforcement approach in this area.
This set of probes is described as the CMA’s first consumer protection drive under its new enforcement powers, with all three firms being issued advisory letters as the regulator monitors pricing practices.
Britain's Competition and Markets Authority has opened formal investigations into Trainline, Virgin Atlantic, and RED Driving School over drip pricing — a practice where mandatory fees are hidden or added late in the checkout process, leaving customers paying more than the headline price suggested. Wired Government reported the probes are the CMA's first consumer protection drive under its new enforcement powers.
The CMA has issued advisory letters to all three firms and warned that drip pricing can mislead shoppers, make cheaper-looking deals appear better than they are, and cost consumers hundreds of pounds. All three companies say they are cooperating with the regulator.
What Drip Pricing Means and Why It Matters
Drip pricing happens when a company shows a low headline price, then adds mandatory fees step by step during checkout. By the time a customer reaches payment, the total is much higher than expected. The CMA says this practice tilts competition — it makes some sellers look cheaper than they really are, pushing buyers toward options that end up costing more. Express reported the regulator wants customers to see the full price upfront, every time.
The CMA has acted on drip pricing before. It previously ordered StubHub to pay nearly £1.5 million in refunds and penalties for hiding fees on ticket sales. These new probes signal the regulator is widening its crackdown across industries.
Trainline and Virgin Atlantic Face Fee Transparency Questions
The CMA is looking at Trainline's booking fees, which reportedly range from 59p to £2.79 per train ticket, plus a separate £1.50 fee for coach bookings. The concern is that these charges appear at different points in the process rather than in one clear total at the start. Wired Government noted customers may not realise the full cost until they are close to paying.
Virgin Atlantic faces scrutiny over package holidays. The CMA is investigating whether mandatory resort fees and local taxes — which can add hundreds of pounds to a trip — were left out of the upfront price shown to customers. Travel Gossip reported the regulator is examining how these charges were presented during the booking journey.
RED Driving School's Booking and Digital Fees Under Scrutiny
RED Driving School is being probed over two separate charges added to driving lesson bookings: a mandatory booking fee and a so-called 'digital' fee of around £7 or more per booking. Bury Times reported the CMA wants to know whether these fees were included in the total price shown upfront or disclosed only later. Driving lessons can already be expensive, and hidden fees on top push costs higher.
RED Driving School said it is working with the CMA. Like Trainline and Virgin Atlantic, the company defended its pricing approach. All three firms maintain they believe their practices are fair, though the investigations will determine whether they meet the legal standard for price transparency.
New CMA Powers Put Businesses on Notice
These three cases mark the CMA's first use of new consumer protection powers granted to it under recent legislation. Previously, the regulator had to go through courts to enforce consumer law. Now it can act faster and more directly. Wired Government described the advisory letters as an early-stage tool the CMA uses to put companies on notice before escalating action.
The CMA has made clear that drip pricing is a priority. The regulator says that when shoppers cannot trust the price they first see, it damages confidence in markets as a whole. More investigations in other sectors are expected as the CMA continues to push for full upfront pricing across British retail and services.
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