Trainline, Virgin Atlantic and Red Driving School investigated over pricing
The CMA said it observed transactions with additional fees ranging from 50p to £2.79, with a £1.50 booking fee for coach journeys.
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Summary
The CMA said it observed transactions with additional fees ranging from 50p to £2.79, with a £1.50 booking fee for coach journeys. Sue Davies, head of consumer rights policy at Which?, said: “The CMA shouldn’t hesitate to use its new consumer enforcement powers to fine any firms that have broken the rules – especially after each firm has already received a warning advisory letter. “Following comments made by the Prime Minister last week that unfair pricing practices have no place in our economy, this move sends a clear message to other businesses to follow the rules.”. Virgin Atlantic is among those being investigated by the CMA (Joe Giddens/PA) (PA Archive) It said this includes practices were mandatory charges are separated from the headline price or added later in the buying process, known as drip pricing.
Furthermore, A Virgin Atlantic Holidays spokesman said: “We take our responsibility to customers incredibly seriously and we always want to ensure they can make an informed decision when booking a holiday with us. “Mandatory fees are indicated at multiple stages throughout the booking journey. “We are reviewing the points raised by the CMA carefully and will co-operate fully with its investigation.” Red Driving School has also been contacted for comment. Red Driving School is being investigated over how a mandatory booking fee and a so-called digital fee – typically £7 per booking – were displayed for driving lessons. The UK competition watchdog has launched investigations into the Trainline, Virgin Atlantic and Red Driving School over concerns customers were not shown full prices upfront.
In addition, The investigation into Virgin Atlantic is looking into mandatory resort fees and local taxes for package holidays. Shoppers could therefore face unexpected costs or have to calculate the total cost of a purchase themselves. “Such practices can also impact competition between businesses, as a firm using drip pricing may falsely appear to be cheaper than a competitor and attract more customers,” the CMA added.
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The CMA said it observed transactions with additional fees ranging from 50p to £2.79, with a £1.50 booking fee for coach journeys.
reliability low1/2 sourcesSue Davies, head of consumer rights policy at Which?, said: “The CMA shouldn’t hesitate to use its new consumer enforcement powers to fine any firms that have broken the rules – especially after each firm has already received a warning advisory letter. “Following comments made by the Prime Minister last week that unfair pricing practices have no place in our economy, this move sends a clear message to other businesses to follow the rules.”
reliability low1/2 sourcesVirgin Atlantic is among those being investigated by the CMA (Joe Giddens/PA) (PA Archive) It said this includes practices were mandatory charges are separated from the headline price or added later in the buying process, known as drip pricing.
reliability low1/2 sourcesA Virgin Atlantic Holidays spokesman said: “We take our responsibility to customers incredibly seriously and we always want to ensure they can make an informed decision when booking a holiday with us. “Mandatory fees are indicated at multiple stages throughout the booking journey. “We are reviewing the points raised by the CMA carefully and will co-operate fully with its investigation.” Red Driving School has also been contacted for comment.
reliability low1/2 sourcesRed Driving School is being investigated over how a mandatory booking fee and a so-called digital fee – typically £7 per booking – were displayed for driving lessons.
reliability low1/2 sourcesThe UK competition watchdog has launched investigations into the Trainline, Virgin Atlantic and Red Driving School over concerns customers were not shown full prices upfront.
reliability low1/2 sourcesThe investigation into Virgin Atlantic is looking into mandatory resort fees and local taxes for package holidays.
reliability low1/2 sources
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Shoppers could therefore face unexpected costs or have to calculate the total cost of a purchase themselves. “Such practices can also impact competition between businesses, as a firm using drip pricing may falsely appear to be cheaper than a competitor and attract more customers,” the CMA added.
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