CMA probes Trainline, Virgin Atlantic pricing

The UK Competition and Markets Authority has opened investigations into Trainline, Virgin Atlantic and RED Driving School over concerns that customers were not shown the total price upfront when making purchases. The cases focus on so-called drip pricing, where mandatory charges are added during the booking process rather than being included in the first price presented to consumers.

The launch of these investigations forms part of a broader clampdown on retail practices that may obscure the true cost of products and services. The CMA has stressed that the first price consumers see during an online transaction should match the amount they ultimately pay, including any mandatory fees.

The CMA is using strengthened consumer-protection powers in these probes. If it concludes that consumer law has been breached, the authority can order compensation for affected customers and impose financial penalties, including fines of up to 10% of a company’s global turnover.

These powers give the regulator scope not only to address specific instances of alleged non-compliance but also to push companies toward clearer, more transparent pricing structures. However, the investigations are at an early stage and no determinations on wrongdoing have been made.

Trainline stated that it has proactively engaged with the CMA for several months in connection with the issue. The company said it is taking steps to enhance how certain fees are presented within its booking flow and confirmed that it will continue to cooperate fully with the regulator during the investigation.

Virgin Atlantic said it is reviewing the concerns raised by the CMA. The airline indicated that mandatory resort and local fees are shown at multiple stages of the holiday booking journey and added that it will cooperate with the authority as the inquiry proceeds.

The announcement of the CMA’s investigations prompted a strong reaction in financial markets. Trainline’s shares fell sharply in early trading after the news, with the decline reported to be as much as about 14% at one point.

No specific financial impact has been disclosed in relation to Virgin Atlantic or RED Driving School. The CMA has not yet published any findings on whether consumer law has been breached, and the outcomes of the investigations remain to be determined.