AA penalised for drip pricing across two driving school brands
The Competition and Markets Authority has fined the AA £4.2m and required it to repay more than £760,000 to in excess of 80,000 learner drivers, after determining that two of its subsidiaries systematically withheld the full cost of driving lessons during the online booking process.
The two businesses implicated are AA Driving School and BSM Driving School, both owned by the AA. The CMA found that neither disclosed mandatory fees upfront, a tactic regulators classify as drip pricing and which is prohibited under UK consumer law. The watchdog opened its investigation into both brands last year.
The financial penalties are split between the fine itself and the customer repayment order. The £760,000 restitution figure reflects the additional charges that were not shown to customers at the point of booking. The fine of £4.2m is levied on the AA as the parent entity responsible for both schools.
The case is part of a broader CMA focus on drip pricing across consumer-facing industries, where headline prices shown early in a purchase journey understate the total cost a customer will pay by the time they check out.
