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CMA probes Virgin Atlantic, Trainline over drip pricing

Financial Times Companies •
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The UK Competition and Markets Authority (CMA) has opened investigations into Virgin Atlantic, Trainline, and Red Driving School for alleged drip pricing—adding fees later in the booking flow so the first price shown is not the final cost. Emma Cochrane, the CMA’s executive director for consumer protection, said “the first price customers see should be the price they pay,” especially as households watch every pound. The move follows the regulator’s action against Stub Hub, which was ordered to pay nearly £1.5mn in refunds and penalties, and the CMA can impose fines up to 10 % of global turnover.

Trainline said it had “proactively engaged” with the CMA and is “taking steps to enhance the presentation of certain fees,” while its shares dropped 14 per cent in London. Virgin Atlantic stated that mandatory fees are indicated at multiple stages and it will cooperate fully. Red Driving School expressed disappointment but affirmed it is working closely with the CMA to reach a swift conclusion.