(Aug19): Virgin Atlantic Airways Ltd and Trainline plc face an investigation from the UK watchdog over misleading retail pricing, in the first move since the country’s new prime minister promised to ease the cost of living for consumers.

The Competition and Markets Authority started three consumer-protection investigations on Wednesday, including against Red Driving School, over concerns that customers were not shown the total price upfront — a practice known as drip pricing. The watchdog suspects the firms did not include mandatory fees for services in the upfront cost shown to customers.

“Investigations into online pricing practices are part of CMA’s work to help ease cost-of-living pressures,” the regulator said in a statement.

The announcement comes just a week after UK Prime Minister Andy Burnham embarked on a nationwide tour to promote new policies aimed at reducing the cost of living. He pledged “everyday fixes” for issues that contribute to higher prices for consumers.

“Mandatory fees are indicated at multiple stages throughout the booking journey. We are reviewing the points raised by the CMA carefully,” Virgin Atlantic Holidays said in a statement.

Trainline has engaged with the CMA and is “taking steps to enhance the presentation of certain fees", the company said.

The opening of the investigation does not mean the firms have broken the law. If the probe eventually finds breaches, the CMA can seek compensation for consumers and impose fines worth as much as 10% of a firm’s global revenue.

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