CMA investigates Trainline, Virgin Atlantic and Red Driving School for drip pricing

The Competition and Markets Authority (CMA) has opened formal investigations into Trainline, Virgin Atlantic and Red Driving School over concerns that all 3 companies hid mandatory fees from the headline price shown to customers.

The investigations, announced on 19 August 2026, follow advisory letters the CMA had already sent to all 3 firms. The regulator says concerns about their pricing practices remain despite that earlier warning.

What the CMA alleges

Trainline is alleged to have left mandatory fees of £0.59 to £2.79 on train tickets, and a £1.50 fee on coach tickets, out of the price shown on its app and website.

Virgin Atlantic is alleged to have left mandatory resort fees and local taxes out of its headline prices for package holidays.

Red Driving School is alleged to have added a mandatory booking fee and a digital fee of £7 or more per booking that were not included in the total price shown to customers.

Emma Cochrane, the CMA's executive director for consumer protection, said:

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. 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. The first price customers see should be the price they pay.

What the companies say

Trainline said in a statement to the stock exchange that it had “proactively engaged with the CMA over several months” and was “taking steps to enhance the presentation of certain fees”. Shares in the company fell by as much as 14% in early trading.

Virgin Atlantic said mandatory fees were “indicated at multiple stages” when customers were booking trips, and that it was reviewing the concerns and would cooperate with the regulator.

Red Driving School said it valued transparency in its customer interactions and was engaging with the CMA.

The CMA is at the beginning of its investigations and has reached no conclusions about whether any of the 3 firms has broken the law.

What the law says traders must do

Drip pricing has been banned since 6 April 2025 under the Digital Markets, Competition and Consumers Act 2024. Traders must show the total price, including all mandatory fees, taxes and charges, in any invitation to purchase. Where the total cannot reasonably be worked out in advance, they must explain how it will be calculated.

The CMA interprets ‘invitation to purchase’ broadly. It covers a price on a website, an advert, a social media post, a shopping basket, an app banner or a search result - anywhere a customer might see a price before they buy. Hiding unavoidable fees until later in the checkout may break the law.

Under its new enforcement powers, the CMA can decide whether consumer law has been broken without going to court. If it finds an infringement, it can fine a business up to 10% of its global turnover and order it to compensate affected customers.

Fines and refunds already issued

The 3 new investigations follow 2 completed cases in which the CMA used the same powers to fine companies and secure refunds.

In April 2026, the CMA fined the AA and BSM driving schools £4.2 million and ordered about £760,000 to be repaid to around 80,000 learner drivers. The case concerned a mandatory £3 booking fee that was not included in the upfront price shown on the AA and BSM websites.

In June 2026, the CMA fined StubHub UK about £889,200 and ordered it to repay more than £590,000 to over 50,000 customers. The case concerned mandatory delivery and service fees that were revealed only at checkout between 6 April and 7 December 2025.

What this means for consumers

The law is clear: the first price shown should already include every unavoidable fee. A price that rises at checkout because of mandatory charges that were not shown upfront may be breaking the law.

Consumers who think a company has hidden mandatory fees from them can complain to the CMA. Our guide on how to challenge a hidden fee at checkout sets out the steps to take.