Trainline, Virgin Atlantic and RED Driving School investigated over 'drip pricing'
Summary
The UK’s consumer watchdog, the Competition and Markets Authority (CMA), is investigating Trainline, Virgin Atlantic, and RED Driving School for possibly using "drip pricing." This means they may not be showing all mandatory fees in the upfront prices, which could mislead customers. If found guilty, the companies could face fines or be forced to pay compensation.Key Facts
- The CMA is looking into whether these companies hide mandatory fees until later in the booking process.
- Trainline was observed adding fees up to £2.79 for train tickets and £1.50 for coach bookings after the initial price.
- Virgin Atlantic is being investigated for not including resort fees and local taxes upfront, which can add hundreds of pounds.
- RED Driving School may have hidden booking and digital fees that could add more than £7 per lesson.
- The CMA has previously fined other driving schools for similar pricing issues affecting over 80,000 customers.
- Trainline and Virgin Atlantic said they aim to be clear with customers and will work with the CMA.
- The CMA emphasized that customers should see the full price from the start to avoid surprise extra costs.
- The investigation responds to concerns about consumer protection during tight household budgets.
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