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CMA Launches Drip-Pricing Probe into Trainline, Virgin Atlantic and RED Driving School

The CMA is investigating Trainline, Virgin Atlantic and RED Driving School over alleged drip pricing, using new enforcement powers for the first time.

By The UK Pulse Editorial Team··4 min read·How we work
A young woman sitting at her laptop while holding a credit card

Britain's competition regulator has opened investigations into Trainline, Virgin Atlantic and RED Driving School amid concerns that all three failed to display full prices upfront to customers. The Competition and Markets Authority (CMA) is examining whether the companies engaged in so-called "drip pricing", an illegal practice in which mandatory charges are withheld from the headline price shown at the start of a transaction. Should the CMA conclude that consumer law was broken, it has the power to impose fines or order compensation for affected customers.

According to the regulator, these are its first consumer-protection investigations brought under new enforcement powers granted by the Digital Markets, Competition and Consumers Act 2024, as reported by the government's official announcement. The watchdog said all three companies had already been sent advisory letters as part of a broader effort to tackle misleading pricing across the retail and travel sectors.

What did the CMA find at each company?

In Trainline's case, the CMA observed additional charges of between 59p and £2.79 tacked onto advertised train fares, alongside a £1.50 booking fee on coach tickets, according to the official case summary.

Both are costs that can add up for frequent travellers.

For Virgin Atlantic, investigators are looking at whether mandatory resort fees and local taxes were properly reflected in the upfront prices shown to customers booking package holidays. The CMA said such charges can vary widely and in some cases add hundreds of pounds to the overall cost of a trip.

At RED Driving School, the regulator is examining whether compulsory booking and digital fees were included in the headline price quoted to learners booking lessons. The CMA said these fees could exceed £7 per lesson.

Has this happened before?

Trainline has faced similar scrutiny previously. In 2023, the Office of Rail and Road found that it and six other third-party ticket retailers were not being transparent about additional fees. Earlier this year, the CMA also ordered two separate driving schools to refund more than 80,000 customers after they failed to disclose the total cost of lessons during the online booking process. The regulator noted that comparable issues have surfaced repeatedly in ticketing and travel booking, where extra charges are often added only at the final stage of a purchase.

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The CMA has pursued several related cases in recent months. In June 2026, it fined StubHub £900,000 for failing to display full ticket prices upfront, a case that also required StubHub UK to refund more than 50,000 customers over hidden ticket fees. The regulator has separately been investigating Ryanair over fees charged to parents seeking to sit with their children on flights.

What have the companies said?

Emma Cochrane, the CMA's executive director for consumer protection, said the principle at stake was straightforward.

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 spokesperson for Virgin Atlantic Holidays said the company treated its responsibilities to customers seriously.

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 firm remained focused on clarity for its customers, adding that discussions with the regulator had been under way for some time.

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.

What happens next?

The CMA said it is at an early stage in all three investigations and will now gather evidence directly from the companies before determining whether consumer protection law has been breached, according to the regulator's statement. Under its enforcement powers, the watchdog can fine companies up to 10% of their global turnover if a breach is confirmed. A separate case page covering RED Driving School states that the CMA will continue to engage with the firm and assess the evidence, with no findings made at this point, as noted by the official case listing.

  • The CMA is investigating Trainline, Virgin Atlantic and RED Driving School over alleged drip pricing.
  • Trainline fees observed by the CMA ranged from 59p to £2.79 on train tickets, plus £1.50 on coach bookings.
  • Virgin Atlantic's package-holiday fees under scrutiny can reportedly add hundreds of pounds to trip costs.
  • RED Driving School's mandatory fees were said to exceed £7 per lesson.
  • Companies found in breach could face fines of up to 10% of global turnover or be ordered to compensate customers.

This article was sourced from bbc

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