CMA on message with new PM’s planned purge of hidden fees and add-on charges
The Competition and Markets Authority (CMA) is on-message with Andy Burnham’s declaration of war on the small – and sometimes not-so-small – hassles and expenses of everyday consumer life created by companies’ underhand and misleading pricing tactics. Trainline, Virgin Atlantic and Red Driving School found themselves under investigation on Wednesday for various forms of alleged “drip pricing” – not being upfront about mandatory add-on charges, in other words.
The prime minister had nothing to do with the CMA’s pursuit, it should be said. The watchdog’s “consumer protection drive” pre-dates his arrival and was encouraged by legislation under the last Tory government – the Digital Markets, Competition and Consumers Act of 2024, which gave the regulator “direct enforcement” powers, meaning it no longer had to go to court under consumer protection laws. And it is using those powers: eight cases were opened last November and driving schools AA and BSM plus the ticketing site StubHub UK have already been fined.
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