The Competition and Markets Authority (CMA) has launched a CMA drip pricing investigation into three companies (Trainline, Virgin Atlantic and RED Driving School) over concerns that mandatory fees are being hidden from customers at the point of sale, with potential fines of up to 10% of turnover if the watchdog concludes the law has been broken.
What the CMA drip pricing investigation covers
Drip pricing is an illegal practice under UK consumer protection law, occurring when compulsory charges are not included in the headline price shown to customers. The CMA can now rule that consumer law has been broken without taking businesses to court, a power it has held since last year.
According to LexisNexis UK, any firm found to have violated these rules faces a fine of up to 10% of its annual turnover. The CMA can also order companies to compensate affected customers.
The formal investigation into Trainline.com Limited was opened on 18 August 2026, according to Stockopedia.
Fees observed by the watchdog
In Trainline’s case, the CMA said it observed fees of up to £2.79 being added to headline train fares, and up to £1.50 for coach bookings. ‘Both are costs that can add up for frequent travellers,’ the CMA said.
Trainline has faced similar scrutiny before. In 2023, the Office of Rail and Road said Trainline and six other third-party train ticket sellers were not being upfront about fees.
A Trainline spokesperson said the company was ‘committed to offering customers a transparent booking experience with clear pricing and genuine value,’ adding that it had ‘proactively engaged with the CMA over several months’ and was ‘taking proactive steps to enhance how certain fees are presented to our customers.’
For Virgin Atlantic, the CMA is examining whether mandatory resort fees and local taxes were included in upfront prices shown to customers buying package holidays. The watchdog said these fees vary but can go up to hundreds of pounds, substantially increasing the total cost of a holiday. A Virgin Atlantic Holidays spokesperson said it takes its responsibility to customers ‘incredibly seriously’ and that ‘mandatory fees are indicated at multiple stages throughout the booking journey,’ adding that the company would cooperate fully with the investigation.
The probe into RED Driving School centres on whether mandatory booking fees and digital fees were included in the upfront prices shown to people buying driving lessons. Investing.com reported that RED’s mandatory fees total £7 or more per booking. The CMA said the fees could be more than £7 per lesson. RED Driving School had not responded to a request for comment at the time of publication.
Earlier action against driving schools
The CMA has moved against the sector before. Earlier this year, it ordered two other driving schools to give refunds to more than 80,000 customers after they failed to disclose the total price for lessons upfront during the online booking process.
Emma Cochrane, the CMA’s executive director for consumer protection, said: ‘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.’
Consumer rights group Which? said the CMA should not hesitate to use its powers, ‘especially after each firm has already received a warning advisory letter.’ Sue Davies, head of consumer rights policy at Which?, said the move ‘sends a clear message to other businesses to follow the rules,’ adding that consumers must have confidence ‘that the regulator is willing to step in to protect their rights.’
Which? noted that the Prime Minister had, the previous week, said unfair pricing practices have no place in the economy.
All three companies now face formal scrutiny under the CMA’s consumer protection powers, with the outcome of the CMA drip pricing investigation set to determine whether fines, refund orders or both will follow.
