UK CMA Fines AA Schools £4.2M, Orders 80,000 Refunds for Drip Pricing

The UK's Competition and Markets Authority has ordered two driving schools owned by the Automobile Association to refund more than 80,000 customers and pay a 4.2 million pound fine for failing to disclose a mandatory booking fee in their online prices, a practice known as drip pricing. The violation affected learner drivers booking lessons through AA Driving School and BSM Driving School between April and December 2024.

The CMA investigation revealed that the schools advertised lesson prices online without including a required three pound booking fee upfront. Customers only saw the full cost at the checkout stage, after selecting lesson packages, choosing times and entering personal details. This approach breached consumer protection laws, which mandate that all unavoidable charges be displayed from the outset to allow informed decisions. The regulator determined that the omission misled learners into underestimating the total expense.

As a result, the schools must repay over 760,000 pounds in total, with individual amounts varying based on the number of lesson packages purchased and averaging about nine pounds per customer. Affected individuals will receive letters from AA...