CMA INVESTIGATES TRAINLINE, VIRGIN ATLANTIC AND RED DRIVING SCHOOL OVER...

The Competition and Markets Authority has launched investigations into Trainline, Virgin Atlantic and RED Driving School over concerns that customers were not shown total prices upfront when purchasing train and coach tickets, package holidays and driving lessons. The CMA announced the investigations on Wednesday and said they were at an early stage, with no conclusions yet reached on whether any of the three companies had breached consumer law. The regulator said each business had previously received an advisory letter as part of an earlier enforcement action. If breaches are found, the CMA could order the firms to pay compensation to affected customers and impose fines of up to 10 per cent of their global turnover.

The investigation into Trainline focuses on whether mandatory fees were displayed to travellers buying train and coach tickets in advance on the platform's app and website, with the CMA observing additional fees ranging from 59p to £2.79 on train bookings and a £1.50 booking fee on coach journeys. Virgin Atlantic faces scrutiny over mandatory resort fees and local taxes on package holidays, which the regulator said can vary but may cost hundreds of pounds. RED Driving School is being examined over how a mandatory booking fee and a digital fee of more than £7 per booking were displayed to customers. The investigations are being brought under the Digital Markets, Competition and Consumers Act, which strengthened the CMA's consumer protection powers.

Trainline shares fell 16 per cent on Wednesday following the announcement. Trainline said it had engaged proactively with the CMA and was taking steps to enhance how certain fees are presented to customers. Virgin Atlantic said it was reviewing the CMA's concerns and would cooperate fully with the investigation. RED Driving School, which operates a network of over 1,700 franchised driving instructors across the UK, has not yet made a public statement on the matter.