The UK's Competition and Markets Authority has launched formal investigations into Trainline, Virgin Atlantic and Red Driving School over concerns that they showed customers misleadingly low prices by not disclosing all mandatory fees upfront. The probes form part of a wider crackdown on "drip pricing", an illegal practice in which extra charges are added later in the buying process, making products appear cheaper than they actually are when advertised for train and coach tickets, holidays and driving lessons.

The CMA said it had previously put the firms on notice before opening formal investigations, using new consumer protection powers granted last year that let it rule on breaches of consumer law without going through the courts; penalties can reach up to 10% of a company's global turnover, alongside orders for customer compensation. Trainline said it had engaged with the regulator and was improving how fees are displayed, and its shares fell as much as 14% on the news, while Virgin Atlantic said it was reviewing the concerns; Red Driving School has not yet commented. The CMA has previously acted against StubHub, which paid nearly £1.5m in refunds and penalties, and the AA, which was fined £4.2m and ordered to repay over £760,000 to learner drivers.