Trainline amongst three major UK companies under investigation by government watchdog

British companies under investigation for ‘drip pricing’

The Competition and Market Authority (CMA) is the principal business regulator in the UK responsible for keeping competition within the country and tackling unfair behaviour. 

The CMA’s investigations are part of a broader crackdown on ‘drip pricing’, an illegal practice to lure customers with misleading low prices.

Trainline, Red Driving School and Virgin Atlantic are all part of the CMA’s investigation.

Concerns over ‘drip pricing’ arose for customers of all three companies as they weren’t shown the full mandatory fees. 

Emma Cochrane, the CMA’s executive director for consumer protection, said: “The first price customers see should be the price they pay.

“Clear pricing helps people compare offers confidently and choose the option that works best for them.

“Unexpected mandatory charges make this much harder, which is why the CMA initially put these firms on notice over concerns about their pricing practices and is now opening formal investigations.”

All three companies have taken steps into shining a light over their ‘hidden fees’.

Trainline stated to the London Stock Exchange that it has been cooperating with the CMA “over several months” in presenting their “certain fees.”

Red Driving School stated they valued transparency and were too engaging with the CMA.

Virgin Atlantic said their mandatory fees were “indicated at multiple stages” when it came to booking trips. 

Prime Minister Andy Burnham has said to bring an end to “rip-off” practices from British businesses.

The Prime Minister said his government would step in wherever it could, as he seeks to put the cost of living at the heart of his premiership.