UK Driving Schools AA and BSM Fined £4.2 Million for Hidden Online Fees

2 million fine on Automobile Association Developments Limited, the owner of AA Driving School and BSM Driving School, for violating consumer protection laws through hidden fees in online bookings. The investigation revealed that between April and December 2025, the driving schools displayed lesson prices online without including a mandatory £3 booking fee upfront.

This practice, known as drip pricing, only revealed the full cost later in the process, misleading customers about the total price.

New customers saw the fee only at checkout after selecting lessons, times, and entering details. Returning customers viewed it separately but not integrated into the initial advertised price until payment.

Investigation and Enforcement The CMA's probe found that the companies broke rules requiring all unavoidable costs to be shown in the headline price from the start.

As a result, the regulator ordered refunds of more than £760,000 to over 80,000 learners who booked lessons during the period. The average refund is expected to be about £9 per customer, depending on the number of lesson packages purchased. Affected individuals do not need to take action; the driving schools will contact them directly and issue payments to original cards or by cheque where necessary.

This marks the first financial penalty issued by the CMA using powers under the Digital Markets, Competition and Consumers Act 2024, which allows the regulator to enforce decisions without court proceedings.