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The Competition and Markets Authority (CMA) has fastened its seatbelt and prepared for take-off on a fresh investigation, this time targeting Ryanair's charges for parents to sit with their children.
The CMA’s investigation goes to the heart of two key consumer law principles: fairness and price transparency.
The ‘Mandatory Family Seat’ Under Scrutiny
Ryanair's terms require that at least one parent sits with a child aged 2 – 11, the so-called "mandatory family seat", which the parent must pay for. For all other passengers, reserving a seat is optional.
The CMA is likely to scrutinise whether this amounts to an ‘unfair’ contract term. In particular, there will be questions over whether consumers are effectively being required to pay in order for the airline to deliver on what may be underlying safety or accessibility expectations.
Alongside this, the CMA is examining how these charges are presented during the booking journey. A key issue will be whether the fee is “drip priced” – i.e. not clearly included upfront but introduced later in the purchase process. This is contrary to consumer law and is an area of increasing enforcement focus.
Drip Pricing in the Spotlight
The direction of travel is clear. The CMA has already signalled a crackdown on drip pricing with its 'major consumer drive' launched late last year. One of these investigations has already concluded and we saw the CMA issue a fine of £4.2 million against AA and BSM driving schools for 'dripped' booking fees.
While the Ryanair investigation remains at an early stage, it is part of a broader regulatory shift: dripped prices are very high risk. Businesses engaging in this practice are unlikely to fly under the radar for long.
For businesses, the takeaway is clear:
- Mandatory fees must be clearly and prominently disclosed upfront; and
- Additional charges linked to core service expectations (particularly safety or essential needs) will attract scrutiny.
Read the original article on GowlingWLG.com
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