AA Driving School and BSM Driving School penalised by CMA
Today, 15 April 2026, the Competition and Markets Authority (CMA) announced that it has imposed a £7 million fine on the AA Driving School and BSM Driving School [1].
The CMA found that from April to December 2025 the driving schools – both owned by the AA – had added a £3 mandatory charge at the point of checkout when booking lessons, a case of illegal “drip pricing”.
“Drip pricing” refers to when the total price payable is not properly disclosed at the start of the buying process and only revealed at or near checkout. Since 6 April 2025 it has been an illegal practice under the Digital Markets, Competition and Consumers Act 2024.
The £7 million fine has been reduced to £4.2 million, as the company admitted early to breaching consumer law, resulting in a more streamlined investigation process. The illegal activity affected 80,000 customers.
See my article Fake reviews and “drip pricing” – both now illegal from 6 April for more details about drip pricing.
TikTok Video on the AA fine
Here is my TikTok video giving a brief outline of the CMA’s action:
@thecomplainingcow The CMA has fined the AA and ordered refunds after hidden fees were added at checkout. This is the first use of new enforcement powers — and more action could follow. Follow for consumer rights updates. #consumerrights #hiddenfees #learnerdrivers #consumerlaw #refunds
CMA New enforcement powers
This is the first time the CMA has used its new enforcement powers. Prior to the introduction of the DMCC, the CMA had to take a company to court to ensure fines and or refunds for consumers. Before this, the CMA could only secure fines and refunds if the company agreed voluntarily to avoid court action, with signed formal commitments, known as “undertakings”, such as in the Wowcher in the spotlight over deceptive pressuring of customers case in July 2024.
The new powers mean that the CMA can fine businesses up to 10% of their global turnover and order them to compensate consumers. So, although I doubt this is anywhere near 10% of the global turnover, it is perhaps a warning shot to businesses who think they can get away with flaunting the law and fleecing customers.
AA customer refunds
The refund customers will receive depends on the number of lesson packages bought, averaging around £9 per customer. Customers do not need to take any action, as the AA will refund affected customers back to the method used to pay. Alternatively, they will send a cheque.
Recent history of DBT and CMA action
In 2023, the Department for Business and Trade (DBT) found that almost half of online businesses (46%) use hidden or “dripped” fees, costing consumers an estimated extra £3 billion a year!
It is interesting to see that this action covers the month from when “drip pricing” became illegal. It hopefully signals that the CMA is honouring its commitment to use its new powers. The regulator was relatively quick to act and will continue to monitor, investigate and take swift action to protect consumers.
Whilst this is the first case in which the CMA has used its powers to fine a company, it follows other action taken against a number of companies recently:
24 March 2026 Adobe subscription issues and how to deal with them
The CMA launched an investigation into some of Adobe’s subscription models.
25 March 2026 Vet products and services get watchdog scrutiny
The CMA defined a number of requirements that it will introduce over the next couple of years in the veterinary sector.
27 March 2026 Regulator investigates alleged “fake reviews”
The CMA started an investigation into 5 companies regarding alleged fake reviews.
CMA letter to businesses
In November 2025 the CMA wrote to 100 businesses regarding their online practices and selling tactics, as described in my article CMA launches major consumer protection drive focused on online pricing practices.
It stated that since April 2025 it had conducted a “major cross-economy review” of more than 400 businesses across 19 sectors to assess consumer law price transparency compliance. At that stage the CMA said that it had identified issues in 14 sectors and had written advisory letters to 100 businesses, whilst also publishing new guidance for all businesses.
Note
[1] https://www.gov.uk/government/news/cma-orders-the-aa-and-bsm-driving-schools-to-refund-learner-drivers-over-drip-pricingReport drip pricing (or any other consumer issue)
If you have evidence drip pricing you can report it to the Competition and Markets Authority using the online form. Note that the CMA will not investigate individual reports but collates evidence to inform investigation priorities.
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