AA Driving Schools Fined £4.2m for Hidden Fees and Ordered to Refund Learners
The UK Competition and Markets Authority (CMA) has fined the AA £4.2 million and ordered refunds to over 80,000 learner drivers for employing illegal 'drip pricing' tactics. The investigation revealed that AA Driving School and BSM Driving School failed to display the full price of driving lessons, including a mandatory £3 booking fee, at the start of the online booking process. Instead, this fee was added later, violating UK consumer law requirements for upfront price transparency. As a result, the AA-owned businesses must repay more than £760,000 to affected customers, with average payouts estimated at £9 per person. The CMA noted that the penalty was reduced by 40% due to the AA's cooperation and admission of wrongdoing. This marks the first financial penalty imposed by the CMA under its new powers to enforce consumer protection laws without court proceedings. The AA acknowledged the error, stating it has since updated its website to ensure fees are prominent. This case is part of broader regulatory scrutiny into online pricing practices across various sectors in the UK.
Wire timeline
AA Driving Schools Fined £4.2m for Hidden Fees and Ordered to Refund Learners
The UK Competition and Markets Authority (CMA) has fined the AA £4.2 million and ordered refunds to over 80,000 learner drivers for employing illegal 'drip pricing' tactics. The investigation revealed that AA Driving School and BSM Driving School failed to display the full price of driving lessons, including a mandatory £3 booking fee, at the start of the online booking process. Instead, this fee was added later, violating UK consumer law requirements for upfront price transparency. As a result, the AA-owned businesses must repay more than £760,000 to affected customers, with average payouts estimated at £9 per person. The CMA noted that the penalty was reduced by 40% due to the AA's cooperation and admission of wrongdoing. This marks the first financial penalty imposed by the CMA under its new powers to enforce consumer protection laws without court proceedings. The AA acknowledged the error, stating it has since updated its website to ensure fees are prominent. This case is part of broader regulatory scrutiny into online pricing practices across various sectors in the UK.
The Guardian