The Competition and Markets Authority (CMA) has launched three new investigations into Trainline, Virgin Atlantic, and RED Driving School due to concerns that these companies are not displaying total prices upfront when customers purchase services such as train tickets, holidays, or driving lessons.

This move is part of a broader CMA initiative aimed at addressing misleading pricing practices, particularly drip pricing, where mandatory fees are not included in the initial price displayed to consumers. Such practices can lead to unexpected costs for consumers and may distort competition by making one firm appear cheaper than its rivals.

The investigations focus on specific practices of each company: Trainline is being scrutinized for whether all mandatory fees are included in the prices shown for train and coach tickets; Virgin Atlantic is under investigation for the inclusion of resort fees and local taxes in package holiday prices; and RED Driving School is being examined for how it displays mandatory booking and digital fees for driving lessons.

All three firms had previously received advisory letters from the CMA, which highlighted their obligations under consumer law. The CMA is concerned that despite these warnings, the companies' pricing practices may still be misleading.

If the CMA finds that any of the firms have violated consumer law, it has the authority to impose fines and require compensation for affected customers. The CMA's Executive Director for Consumer Protection emphasized the importance of clear pricing, especially during times of economic strain for households.

These investigations are part of the CMA's ongoing efforts to alleviate cost of living pressures and ensure fair pricing practices across various sectors, including ticketing and driving schools.