AA and BSM driving schools ordered to refund learner drivers over hidden booking fees

More than 80,000 learner drivers were not shown the total price upfront when booking lessons online, in breach of consumer law.

The AA has been ordered to refund more than 80,000 learner drivers and pay a £4.2 million fine after the Competition and Markets Authority (CMA) found that AA Driving School and BSM Driving School, both owned by the AA, added a mandatory booking fee at the end of the checkout process rather than displaying it upfront.

The practice, known as drip pricing, meant that learners were shown prices that did not include the mandatory £3 booking fee until after they had selected lessons, chosen times and entered personal details. Affected customers will receive an average refund of around £9 each, totalling more than £760,000. They do not need to take any action because the AA will contact them directly.

Sarah Cardell, chief executive of the CMA, said: 

“If a fee is mandatory, the law is clear: it must be included in the price from the very start – not added at checkout – so consumers always know what they need to pay.”

She added: “At a time when people are watching every pound, dripped fees can tip the balance. And when it comes to something as important – and costly – as learning to drive, people deserve clarity.”

Nikki Stopford, co-founder of Consumer Voice, said the case should serve as a warning to other businesses using similar pricing tactics. 

“A clear higher price is fairer than a misleading low price. Consumers should not have to reach the checkout before discovering what they will really be charged.

“The fine sends a strong message, but the real test is whether businesses change their pricing so people can compare costs properly without prices jumping at the checkout.”

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What the AA and BSM did wrong

The CMA’s investigation found that people booking driving lessons on the AA and BSM websites between 6 April and 15 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. For returning customers, the fee was shown separately and only included in the total on the following page.

Under consumer law, businesses must show the total price from the outset, including all mandatory charges. Adding unavoidable fees later in the booking process is illegal.

Having admitted that it had broken the law, settled the case early and worked constructively with the CMA, receiving a 40% reduction in its fine. The original fine before the discount was £7 million. 

The AA case marked the first time the CMA used its new direct enforcement powers, which came into force on 6 April 2025, to impose a financial penalty for breaking consumer law. Since then, Marks Electrical has been fined £720,000 and StubHub UK almost £900,000, with all three businesses also ordered to return money directly to affected customers.

What affected learner drivers need to know

The AA will write to each affected customer confirming their refund, which will be automatically paid back to the card used to book their lessons. If that is not possible, a cheque will be sent instead. 

The exact amount will vary depending on how many lesson packages the customer purchased. All refunds should be processed by 15 April 2027.

If you believe you are affected but do not hear from the AA, or are unhappy with its response, contact AA Driving School or BSM Driving School directly.

You can also check the CMA’s official refund and compensation page for more information about this refund and others.

Your rights when prices are not shown up front

Under consumer law, businesses must display the total price of a purchase from the start. Mandatory charges should not be hidden or added later in the checkout process.

Government research published before the new rules were introduced found that almost half of 525 online businesses reviewed (46%) used hidden or dripped fees, potentially costing UK consumers up to £3.5 billion extra online each year.

If you have been charged a mandatory fee that was not clearly included in the price upfront, complain to the business and ask it to put it right. Depending on the circumstances, this could include asking for the fee to be refunded.

You should also report hidden or misleading fees so Trading Standards can identify businesses that may be breaking consumer law. In England and Wales, contact the Citizens Advice consumer service. In Scotland, contact consumeradvice.scot, and in Northern Ireland, contact Consumerline. These services can provide advice and pass relevant complaints to Trading Standards for possible investigation.

For a full guide to your rights on hidden fees and drip pricing, visit our hidden fees and drip pricing guide.