Britain's Competition and Markets Authority has opened investigations into Trainline, Virgin Atlantic and RED Driving School over suspected drip pricing, the illegal practice of omitting mandatory charges from advertised headline prices.
The watchdog observed additional fees of up to £2.79 on train fares and £1.50 on coach bookings through Trainline. Virgin Atlantic faces scrutiny over whether resort fees and local taxes reaching hundreds of pounds were included in upfront holiday prices, while RED Driving School is being examined for booking and digital fees of more than £7 per lesson. Trainline shares fell roughly 15% in early trading on Wednesday.
The probes are part of a broader CMA clampdown using new consumer protection powers granted last year that allow it to rule on infringements without going to court. Companies found in breach can be fined up to 10% of global turnover, and affected consumers could receive compensation.