CMA launches investigation into mandatory fees of Red Driving School

The Competition and Markets Authority of the United Kingdom (CMA) opened a formal investigation against RDS Driving Services Limited, known as Red Driving School, on August 18, 2026. The aim is to determine if the company is complying with consumer protection legislation, specifically regarding the clarity and presentation of mandatory fees in its prices. So far, it has not been concluded that Red Driving School has committed any infringement, and the investigation is in the initial phase of gathering information and evidence.

Start of the investigation and reasons

The CMA initiated the process in August 2026 after receiving concerns regarding how Red Driving School, through its trading name, presents mandatory fees to its customers. The focus is on whether these fees are part of the total price the consumer sees at the beginning of the purchasing process. This practice, known as 'drip pricing', is under regulatory scrutiny in various sectors of the United Kingdom, including training and other services throughout 2026.

Fred Houwen, Project Director of Consumer Protection at the CMA, leads the case alongside Sorcha O’Carroll as the Principal Officer. The investigation includes detailed collection of relevant information and evidence to determine if there has been any violation of the applicable legal framework.

Scope and methodology of the CMA in consumer protection cases

In this procedure, the CMA employs the powers established in Part 8 of the Enterprise Act 2002. The process involves:

• Formal request for relevant information and evidence from Red Driving School
• Assessment of transparency in the presentation of prices and mandatory fees
• Review of how information is accessible to consumers during the purchasing process
• Consideration of compliance with the Data Protection Act 2018 and the UK General Data Protection Regulation (GDPR)

The CMA emphasizes that, at this stage, the investigation is preliminary and it should not be assumed that there is an infringement.

Drip pricing: context and background in the United Kingdom

The case of Red Driving School is part of a broader review by the CMA regarding possible 'drip pricing' practices in relevant sectors. On the same day, August 18, 2026, the CMA announced that it is also investigating companies like Trainline and Virgin Atlantic concerning the inclusion of extra fees and the clarity offered to consumers from the start of the purchasing process.

“The aim is to ensure that consumers can make informed decisions and fairly compare offers,” stated the CMA in its announcement on August 18.

These investigations respond to concerns that consumers face unexpected charges or incomplete information when finalizing a service purchase.

Timeline and next steps of the CMA's investigation

The CMA expects to gather information and evidence between August 2026 and January 2027. An official update on the case is anticipated for January 2027. During the process, the authority will maintain communication with Red Driving School, and no definitive decisions will be made until the evidence analysis is complete.

Compliance with data protection during the investigation is regulated according to the Enterprise Act 2002 and the current privacy legislation. The personal data collected is part of the dossier and is managed according to the CMA's Personal Information Charter.

Regulatory considerations and repercussions for the services sector

The detailed scrutiny concerning the presentation of mandatory fees highlights a regulatory trend favoring transparency in pricing in the United Kingdom. Operators in training and other areas—even from the payments or events sectors—are closely watching the CMA’s actions for possible regulatory extensions. RDS Driving Services Limited's cooperation with the authorities and the outcome of this case could influence business practices in other sectors.

Validity and public communications

The case of Red Driving School was made public on August 19, 2026, by the CMA. General queries from consumers or third parties can be directed to the official contact of the authority, as indicated in its announcement. No conclusive decisions are expected until at least January 2027, while the evidence gathering and dialogue with the company continue.