AA Driving School fined £4.2m for hidden fees and ordered to refund learner drivers

The owner of the AA and BSM driving schools has been fined £4.2 million for failing to disclose the total price of driving lessons upfront when customers booked online.

This follows an investigation by the Competition and Markets Authority (CMA) into breaches of consumer law.

More than 80,000 customers of the AA Driving School and BSM will share refunds totaling £760,000, with the average payout around £9 each.

The CMA found that between April and December 2025, new customers booking lessons online were initially shown prices that did not include a mandatory £3 booking fee.

This fee only appeared at the checkout stage, after customers had selected lessons, chosen times, and entered personal details.

The practice, known as drip pricing, is illegal as it hides mandatory fees from consumers until the final payment step.

A spokesperson for AA and BSM driving schools said they were disappointed with the outcome but cooperated fully and have made immediate changes to display the booking fee more prominently.

Affected customers do not need to take any action; refunds will be issued automatically to the payment method used or by cheque if necessary.

CMA chief executive Sarah Cardell emphasized that mandatory fees must be included in upfront prices so consumers know the full cost from the start.

Business Secretary Peter Kyle welcomed the CMA's enforcement, stating that consumers should never be caught out by unclear pricing.

The investigation was launched under the Digital Markets, Competition and Consumers Act 2024, reflecting increased regulatory scrutiny of online pricing practices.

It remains unclear how the refunds will be distributed in detail and whether further enforcement actions will follow in the driving instruction sector.

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