The United Kingdom’s Competition and Markets Authority (CMA) has launched an investigation into Ryanair over fees charged to parents in order to sit with their children.
According to the CMA, the airline requires the purchase of a “mandatory family seat” to satisfy the requirement that at least one parent to sit with children aged 2-11 when flying. Reserving a seat, which is optional for other passengers, typically costs around £8, and the fee is charged for both outbound and return flights.
Ryanair is the only major airline flying out of the U.K. to impose the charge, the CMA said.
It will investigate whether the scheme is aligned with consumer law or if the airline is effectively charging parents to meet its own child safety and disability obligations under U.K. aviation rules.
Specifically, the investigation will determine whether the airline’s contract term is “unfair” under consumer law. The determination is based on a fairness test that considers whether “the wording tilts the balance of rights and responsibilities in the contract too much in favor of the business.”
The regulator will also consider whether the mandatory seat fee is “dripped” during the booking process, obscuring the total price. Businesses are legally required to show a total price including all required charges to allow price comparison.
“For the past year, we’ve told businesses to ensure their customers are shown the total price upfront—those who don’t face the very real possibility of action from the CMA,” said Hayley Fletcher, senior director of consumer protection for the CMA.
The move comes after the CMA in 2005 gained additional authority to enforce consumer protections, including the ability to fine companies and compel refunds.
Rhys Griffiths, a partner at Fox Williams, said in a LinkedIn post that Ryanair is the latest company to be investigated for its pricing practices. Overall, the CMA said it has launched investigations into 15 businesses across sectors since gaining its additional enforcement powers.
“This case will provide more insight into how the CMA intends to regulate pricing practices using its new enforcement powers and—if it decides to impose a fine - how those fines are calculated,” Griffiths said.