Tens of thousands of learner drivers are to receive refunds after regulators found that hidden booking fees on AA and BSM driving lessons broke consumer law.
The Competition and Markets Authority (CMA) ruled that the two AA‑owned driving schools used illegal “drip pricing” by failing to include a mandatory £3 booking fee in the upfront lesson price shown online. Instead, learners only saw the extra charge at the final checkout stage, after they had selected lessons, chosen times and entered their personal details.
More than 80,000 customers who booked lessons between April and December last year will share over £760,000 in refunds, with the average payout expected to be around £9 per person. Alongside the refunds, AA’s motoring business has been hit with a £4.2 million fine for breaching consumer protection rules, taking the total financial impact of the case to nearly £5 million.
The CMA said the case was its first use of new powers to issue a financial penalty for a breach of consumer law, and signalled a wider crackdown on hidden online fees. CMA chief executive Sarah Cardell warned that compulsory charges must be made clear from the outset. “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 said.
She added that unclear pricing could have a real impact on people’s budgets at a time when living costs remain under pressure. “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,” Cardell said.
In a statement to Carwow, AA Driving School said it accepted that the booking fee should have been flagged earlier in the process, but insisted it had always been disclosed before customers completed payment. A spokesperson said: “Although the £3 booking fee was made clear to customers prior to their purchase, we acknowledge it should have also been displayed at the start of the online booking journey.”
The company said it had already updated its website in response to the regulator’s concerns. “Having listened to the regulator, we made immediate changes to our website to make the £3 booking fee more prominent. We are now refunding all relevant customers,” the spokesperson added.
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The AA said it was unhappy with the outcome of the investigation but stressed its long-standing focus on motorists’ rights. “Whilst we are disappointed with the outcome of the investigation, we have fully cooperated with the CMA throughout and would emphasise that protecting consumer rights has been central to our business for more than 120 years,” the spokesperson said.
For learners, the ruling is both a warning and a reassurance. Consumer groups say the case underlines the importance of checking the total cost carefully before booking lessons online, as small add‑on fees can mount up over multiple sessions. The CMA says the decision should make it easier for people to compare prices across driving schools, with firms now expected to show the full cost, including compulsory charges, from the start of the booking journey.
Anyone who booked lessons with AA Driving School or BSM during the affected period is expected to be contacted directly and will receive their refund automatically. According to the CMA, the money will normally be sent back to the card used to pay for lessons, or via cheque if that is not possible. The authority has also signalled that it is prepared to take similar action against other businesses that continue to rely on hidden online charges.
