Two leading driving schools have been directed to reimburse £760,000 to over 80,000 students. The AA Driving School and BSM Driving School, both under the ownership of AA, have been fined £4.2 million by the Competition and Markets Authority (CMA) for their use of drip pricing strategies.
Drip pricing involves advertising a product or service at a low initial price and then adding mandatory fees later in the booking process. The investigation by the CMA revealed that both schools did not display the total price upfront for online bookings between April and December 2025, with a compulsory £3 booking fee omitted.
New customers were only shown the full price at the checkout stage after selecting lessons, times, and entering personal details. Returning customers saw the booking fee separately from the initial price and it was included in the total price at the checkout page.
Individual refunds will vary based on the number of lesson packages purchased, with an average payout of approximately £9. Affected customers will automatically receive refunds as the AA Driving School or BSM Driving School will contact each customer directly.
The CMA initiated the investigation into AA Driving School and BSM Driving School the previous year. The AA admitted to violating consumer regulations and settled the case early with the CMA, resulting in a 40% reduction in its financial penalty.
Sarah Cardell, CEO of the CMA, emphasized the importance of transparency in pricing, stating that mandatory fees must be included in the price from the outset to ensure consumers are aware of the total cost. The CMA is committed to enforcing consumer protection laws to prevent unfair treatment of consumers.
A spokesperson for the AA driving schools acknowledged the oversight in not prominently displaying the £3 booking fee at the start of the online booking process. Immediate changes were made to the website to address this issue, and refunds are being issued to affected customers.
In a separate report, the Department for Business and Trade in 2023 found that nearly half of online businesses use hidden fees, leading consumers to spend billions extra annually. Service fees, such as booking or processing charges, were identified as problematic, being mandatory and disclosed late in the checkout process.
