More than 80,000 learner drivers are set to receive refunds after an investigation into hidden booking fees by the Competition and Markets Authority.
The probe found that driving lessons booked through AA Driving School and BSM Driving School did not display the full price upfront. A mandatory £3 booking fee was only revealed at the final checkout stage, a practice known as “drip pricing”.
As a result, customers who booked between April and December last year will share £760,000 in refunds. The parent company, Automobile Association Developments, has also been fined £4.2 million.
Regulatory expectations on pricing transparency
The CMA has made it clear that all mandatory charges must be included in the headline price from the outset. This requirement is reinforced under the Digital Markets, Competition and Consumers Act 2024, which gives the regulator stronger enforcement powers.
CMA chief executive Sarah Cardell said that mandatory fees must be included from the very start of the booking process, and consumers should never be misled by staged pricing increases. She emphasised that transparency is essential, particularly at a time when many people are under financial pressure.
While the refund amount per learner is relatively small, the reputational and financial consequences for non-compliance are significant.
A changing enforcement landscape
This marks the first penalty issued under the CMA’s enhanced powers, signalling a more proactive regulatory approach across sectors.
With further investigations ongoing, including across travel and retail, instructors and training providers should ensure their own practices meet current legal standards.
Maintaining transparent pricing is not only a legal obligation, but also a key factor in building long-term customer trust.
Sourced via: BBC News
