Trainline, Virgin Atlantic and RED Driving School investigated by CMA over hidden fees added at checkout

Three household names — Trainline, Virgin Atlantic and RED Driving School — are under investigation by the Competition and Markets Authority over concerns they showed customers a headline price first and added unavoidable fees later, a practice known as drip pricing.

The investigations, launched on 19 August, will examine whether each business failed to make the full cost of a purchase clear from the start of the transaction — a requirement under the consumer protection regime introduced by the Digital Markets, Competition and Consumers Act, which gives the CMA the power to fine companies directly rather than going through the courts.

At a glance

• The CMA opened drip pricing investigations into Trainline, Virgin Atlantic and RED Driving School on 19 August
• Trainline booking fees observed by the watchdog ranged from £0.59 to £2.79 on train tickets, plus a £1.50 fee on coach bookings
• Virgin Atlantic package holidays allegedly excluded mandatory resort fees and local taxes that can add hundreds of pounds
• RED Driving School allegedly added mandatory booking and digital fees of more than £7 not shown upfront
• Companies found in breach face fines of up to 10% of global turnover and possible consumer refunds

What each company is accused of

For Trainline, Britain's biggest independent ticket retailer, the CMA is examining whether the total price of train and coach tickets — including its booking fee — is shown upfront when customers make their purchase decisions. The watchdog says it observed transactions with fees ranging from £0.59 to £2.79 on train bookings and a £1.50 fee on coach bookings.

The Virgin Atlantic case centres on package holidays, where the CMA says mandatory resort fees and local taxes were excluded from the initial price display — costs that can run to hundreds of pounds per holiday. RED Driving School, one of the UK's largest driving instruction providers, is accused of adding mandatory booking and digital fees of more than £7 that were not shown upfront.

Why the CMA is moving now

"The first price customers see should be the price they pay," said Emma Cochrane, the CMA's executive director for consumer protection.

The drip pricing rules are among the most consumer-visible parts of the new regime: research repeatedly shows that shoppers anchor on the first price they see and rarely abandon a purchase once fees appear at checkout, which is precisely why the practice is profitable.

What the companies face

Under the new powers, the CMA can impose fines of up to 10% of global turnover for breaches of consumer law, order compensation for affected customers and require changes to how prices are displayed.

None of the three companies has been found to have broken the law at this stage — the CMA has opened investigations, established public case pages, and will now examine how each business presents its fees.

The wider crackdown

The investigations are the clearest signal yet of how the CMA intends to use its post-DMCC enforcement powers. Airlines, ticketing platforms and subscription services have all been warned about pricing transparency over the past year.

These are among the first named investigations under the new regime — chosen, notably, from three different consumer sectors: rail, holidays and driving lessons.

What happens next

The CMA has set no deadline for the investigations. If it concludes consumer law was broken, the companies can offer undertakings — changing how they display prices — or contest the findings and risk fines and mandated refunds. For consumers, the practical advice in the meantime is unchanged: judge any booking by the final checkout figure, not the price on the first screen.