STORY
The Competition and Markets Authority has opened consumer protection investigations into Trainline, Virgin Atlantic and RED Driving School over concerns about whether customers were shown the total price upfront. The regulator is examining the presentation of mandatory charges when people buy train and coach tickets, package holidays and driving lessons. It has stressed that the investigations are at an early stage and no conclusion has been reached that any of the companies has broken consumer law.
The CMA said it observed Trainline fees ranging from 59p to £2.79 on advance train bookings and a £1.50 fee on coach bookings. Its Virgin Atlantic investigation will consider whether resort fees and local taxes, which can add hundreds of pounds to some package holidays, were included in the price first shown to customers. RED Driving School is being investigated over mandatory booking and digital fees of more than £7 per booking and how those charges were displayed during the booking process.
All three businesses had previously received advisory letters from the CMA about their obligations under consumer law. The regulator now has stronger direct enforcement powers and can impose fines of up to 10% of a company’s global turnover where it finds an infringement, as well as requiring compensation for affected customers. The CMA said the next steps will depend on the evidence gathered during each investigation.