If a passenger buys a ticket that is “too cheap” ie not valid for all or part of their journey due to the times of travel, they get penalised with a Penalty Fare
That is incorrect - you can only be excessed if in possession of the wrong fare (but the correct destination, adult not child ticket, fare class you travelled in)
So what are the railways going to do about it Chris?
It has to be sorted out - Work is already underway with various papers being submitted to
GBR▸ from interested parties. GBR are developing one website to retail fares, so that new booking engine should (hopefully) be used to drive the
TVMs▸ at stations - and I'm very much hoping that Chiltern's new TVM & software is the direction that GBR are heading in, where you have to choose an open return or input your outward & return times, with a warning that if different timings are then used, you need to check your fare before starting your journey(ies)