The UK Competition and Markets Authority (CMA) has mandated that the AA Driving School and BSM Driving School refund more than £760,000 to over 80,000 learner drivers. This decision marks the first use of the CMA's new powers to secure refunds for consumers affected by illegal pricing practices.

The investigation revealed that the AA and BSM did not display the total price upfront when customers booked driving lessons online. Instead, a mandatory booking fee was added later in the process, violating consumer law. As a result, the AA has been fined £4.2 million for this breach, bringing the total financial impact to nearly £5 million.

Refunds will vary based on the number of lesson packages purchased, with the average payout around £9. Affected customers will automatically receive their refunds without needing to take any action. The AA has cooperated with the CMA throughout the investigation and received a 40% reduction in its penalty for admitting to the violation and settling early.

The CMA's Chief Executive, Sarah Cardell, emphasized the importance of transparency in pricing, stating that mandatory fees must be included in the initial price to avoid misleading consumers. This case is part of a broader CMA initiative to combat illegal online pricing practices, particularly drip pricing, which has been shown to cause significant consumer harm.

Since the CMA's enhanced consumer powers came into effect in April 2025, it has prioritized enforcement against such practices, launching investigations into multiple businesses. The settlement with the AA is a significant step in this ongoing effort to protect consumers from unfair pricing tactics.