The CMA found that more than 80,000 learners were not shown the total price upfront when booking lessons online, as required by law. The AA must refund affected customers over £760,000 and pay a fine of £4.2 million for breaking consumer law, bringing the total cost to almost £5 million. The investigation found that people booking driving lessons on the AA and BSM sites between April and December 2025 were initially shown prices that did not include the mandatory booking fee. For new customers, the full price was only shown at checkout after lessons had been selected, times chosen, and personal details entered. For returning customers, the booking fee was shown separately from the initial price and only included in the total price on the following page, at checkout. This practice of not showing the total price upfront is illegal, as it misleads consumers about the true cost of services.
Affected customers do not need to take any action to secure their refund; the AA Driving School or BSM Driving School will write to each customer outlining that their money will be automatically refunded onto the card they used, or sent a cheque if not possible. The amount repaid to individual consumers will vary depending on how many lesson packages they purchased, with the average payout around £9. This refund process aims to compensate learners who were overcharged due to the hidden fees.
The AA moved quickly to address the CMA's concerns, admitted to breaking the law, agreed to settle the case early, and received a 40% reduction to its financial penalty. This is the first financial penalty the CMA has imposed for a breach of consumer law using its new enforcement powers, highlighting the agency's strengthened ability to penalize unfair business practices.
In November 2025, the CMA launched a major consumer protection drive focused on online pricing tactics and opened investigations into eight businesses, including AA Driving School and BSM Driving School. This initiative targets deceptive pricing strategies that harm consumers, with the driving school case serving as a key example of enforcement under the new framework.