CMA Fines the AA and BSM Over “Drip Pricing” – What Driving Schools Can Learn From It

In April 2026, the Competition and Markets Authority (CMA) announced that The AA and BSM Driving School must refund more than 80,000 learner drivers after customers were charged mandatory booking fees that were not clearly included in the advertised upfront lesson price.

The case has resulted in:

• Over £760,000 in refunds to customers

• A £4.2 million fine

• Nearly £5 million total financial impact

• The first major consumer enforcement action under the CMA’s strengthened powers

And importantly — this isn’t just about large national brands.

This is a clear signal that the UK is becoming far stricter about how businesses present pricing online.

What Is “Drip Pricing”?

“Drip pricing” happens when a business advertises one price initially, then adds unavoidable charges later during checkout.

In this case, learner drivers booking lessons through AA Driving School and BSM Driving School websites between April and December 2025 were shown lesson prices that did not initially include a mandatory booking fee.

The fee only appeared later in the booking journey.

According to the CMA, this breached consumer law because:

If a fee is mandatory, it must be included in the headline price from the very beginning.

Even relatively small fees can influence purchasing decisions — especially during a cost-of-living crisis where customers are comparing prices carefully.

Why This Matters for Driving Schools

Many independent driving schools and franchise businesses may assume these rules mainly affect large corporations.

That would be a mistake.

The CMA has made it very clear that online pricing transparency is now a major enforcement priority.

This includes:

• Driving schools

• Online booking systems

• Introductory agencies

• Lesson marketplaces

• Franchise networks

• Businesses using third-party checkout systems

If a customer cannot avoid a fee, the full amount must be shown upfront.

That includes:

• Booking fees

• Admin fees

• Processing charges

• Mandatory insurance add-ons

• Platform fees

• Test booking charges bundled into packages

Even if the charge appears “before payment,” that may still not be enough if it was missing from the original advertised price.

The Bigger Picture: The CMA Is Cracking Down

This investigation is part of a much wider campaign by the CMA to tackle misleading online practices.

Government research found that:

• Nearly 46% of online businesses use some form of hidden or dripped fees

• UK consumers may be spending between £595 million and £3.5 billion extra per year because of these practices

• Service fees are among the most problematic hidden charges online

The CMA now has stronger powers under the Digital Markets, Competition and Consumers Act 2024, including the ability to fine businesses directly without lengthy court proceedings.

And the regulator has already launched investigations into several other major companies across multiple industries.

What Driving Schools Should Do Now

Whether you’re a single instructor or building a multi-car franchise operation, this is a good time to review your online customer journey.

1. Review Your Pricing Pages

Make sure the advertised lesson price reflects the true total cost the customer must pay.

If there is a mandatory fee:

• Include it immediately

• Avoid “surprise” additions later

• Make pricing easy to understand

Transparency builds trust.

2. Check Third-Party Booking Systems

Some driving schools rely on:

• Franchise booking software

• External CRMs

• Payment plugins

• Lesson scheduling platforms

Even if the software provider designed the checkout process, responsibility may still sit with the business using it.

Review the entire booking experience from a customer’s perspective.

3. Avoid “Too Good to Be True” Pricing

In competitive industries, businesses can feel pressure to advertise the lowest possible lesson price.

But short-term marketing tactics that create confusion can become extremely expensive later.

A strong reputation is built on:

• Clarity

• Trust

• Honest communication

• Consistency

4. Think Long-Term Brand, Not Short-Term Clicks

Many driving schools focus heavily on getting enquiries quickly.

But sustainable growth usually comes from:

• Positive reviews

• High pass rates

• Clear communication

• Strong customer experience

• Transparent pricing

• Word-of-mouth referrals

Especially if your goal is to expand into a franchise model.

A Turning Point for Consumer Law in the UK

This case is likely to become a landmark example of how the CMA intends to enforce online consumer protection laws moving forward.

For driving schools, it’s a reminder that digital marketing and online sales practices now carry real legal responsibility.

The businesses that succeed long term will be the ones that combine:

• Great instructors

• Strong customer service

• Ethical marketing

• Transparent pricing

• Trustworthy online experiences

Because in 2026, customers are not just buying driving lessons.

They’re buying confidence and trust.

For official details about the case and the CMA’s guidance on clear pricing, visit Competition and Markets Authority and Clear Pricing Guidance.