LONDON, April 15, 2026 — The Competition and Markets Authority (CMA) has ordered AA Driving School and BSM Driving School—both owned by Automobile Association Developments Limited—to refund more than 80,000 learner drivers and pay a £4.2 million fine after finding they used illegal “drip pricing” practices when selling driving lessons online.
Under the regulator’s order, the AA must repay over £760,000 to affected customers who were not shown the full price of driving lessons at the start of the booking process. The enforcement action marks the first time the CMA has used its new powers to secure direct refunds for consumers under the UK’s strengthened consumer protection regime.
Hidden booking fee added at checkout
The CMA found that customers booking lessons on the AA and BSM websites between April and December 2025 were initially shown prices that did not include a mandatory £3 booking fee.
For new customers, the full price only appeared at the final checkout stage after learners had already selected lesson packages, chosen times and entered personal details. Returning customers were also shown the fee separately from the initial price before it was added to the total at checkout.
Under UK consumer law, all mandatory charges must be included in the headline price from the outset, meaning the pricing practice constituted an illegal form of drip pricing.
Refunds and reduced penalty after settlement
Affected learners will receive automatic refunds, with the average payment expected to be around £9 per customer, depending on how many lesson packages they purchased. Customers do not need to take action to obtain the refund, which will be credited to their payment card or issued by cheque if necessary.
The AA admitted breaching consumer law and agreed to settle the case early, resulting in a 40% reduction in the financial penalty. The original fine was £7 million before the discount was applied.
Sarah Cardell said the law is clear that mandatory fees must be included in the upfront price.
“If a fee is mandatory, it must be included in the price from the very start – not added at checkout – so consumers always know what they need to pay,” Cardell said. “With our new powers, it will never pay to break the law or treat consumers unfairly.”
Part of wider crackdown on online pricing
The enforcement action forms part of a broader CMA campaign targeting misleading online pricing practices. The regulator launched a consumer protection drive in November 2025, opening investigations into eight businesses including the AA driving schools.
Drip pricing is widespread in online commerce. Government research cited by the CMA estimates that such hidden fees cost UK consumers between £595 million and £3.5 billion annually.
The CMA said it has opened investigations into 14 companies since April 2025 under its strengthened consumer enforcement powers introduced through the Digital Markets, Competition and Consumers Act 2024.
