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(Sharecast News) - Trainline shares plunged by 15% on Wednesday after the UK's competition watchdog opened a formal investigation into the online ticketing group over concerns that customers were not being shown full prices upfront.
The Competition and Markets Authority said it had identified transactions on Trainline's app and website where mandatory fees - including booking charges of up to £2.79 and a £1.50 fee for coach journeys - were added later in the purchasing process, raising potential issues around socalled "drip pricing".
"These practices leave consumers facing unexpected costs or having to calculate the true cost themselves," the CMA said in a statement. Affected consumers could be eligible for compensation if breaches of consumer law were found, it added.
The probe also covers airline Virgin Atlantic and Red Driving School as part of a wider crackdown on misleading pricing practices.
Virgin Atlantic is being examined over how mandatory resort fees and local taxes are displayed for package holidays, while Red Driving School faces scrutiny over the presentation of booking and digital fees.
All three firms have been issued advisory letters under the CMA's new enforcement powers, with the watchdog saying it remained concerned despite earlier warnings and continued monitoring of their behaviour.
Reporting by Frank Prenesti for Sharecast.com
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