AA and BSM Driving Schools Ordered to Refund UK Learner Drivers for Hidden Fees

The UK's Competition and Markets Authority (CMA) launched an investigation after finding that customers booking lessons online between April and December last year were initially shown prices that did not include a mandatory booking fee. This fee was only revealed at the checkout stage, after customers had already invested time in selecting lessons and entering personal details. This practice, known as 'drip pricing,' is illegal as it can mislead consumers into choosing a service based on an incomplete initial price.Automobile Association Developments, the owner of AA and BSM driving schools, admitted to breaking the law and agreed to settle the case early, receiving a 40% reduction on its penalty. This action marks the first penalty imposed by the CMA using its new enforcement powers under the Digital Markets, Competition and Consumers Act 2024, which grants the watchdog direct authority to rule on consumer law breaches.The CMA's investigation is part of a broader review into price transparency across various sectors, including holidays, travel, shopping, and live events. Government research from 2023 indicated that nearly half of online businesses sampled used hidden or dripped fees, highlighting a widespread issue of unclear pricing that regulators are actively addressing.