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LONDON: Britain’s Competition and Markets Authority (CMA) has launched investigations into Trainline, Virgin Atlantic and RED Driving School over concerns about whether customers were provided with clear and complete pricing information before making purchases.
The regulator said the investigations followed complaints that consumers may not have been shown the full cost upfront, including mandatory fees, when purchasing train and coach tickets, holidays and driving lessons.
The CMA stressed that the investigations are at an early stage and that no conclusion has yet been reached on whether any of the companies breached the law.
Trainline, the only publicly listed company among the three, saw its shares fall by nearly 13% in early trading. The company said it had been engaging proactively with the CMA for several months and was taking steps to improve the way certain fees are presented to customers.
Virgin Atlantic said it was reviewing the concerns and would cooperate with the investigation, while RED Driving School had not immediately responded to requests for comment.
The CMA said that if breaches are established, the companies could face fines of up to 10% of their global turnover and may also be required to compensate affected customers.
Emma Cochrane, the CMA’s executive director for consumer protection, said transparent pricing was essential to help consumers compare offers and avoid unexpected mandatory charges.