AA and BSM driving schools fined over drip pricing – how to spot and report hidden fees

More than 80,000 learner drivers will get money back after the UK’s competition watchdog ruled that two AA‑owned driving schools used illegal pricing practices.

The Competition and Markets Authority (CMA) has ordered AA Driving School and BSM Driving School to refund customers who were charged a hidden booking fee. The CMA also fined the AA £4.2 million, bringing the total cost of the case to almost £5 million.

This is the first time the CMA has used its new legal powers to force a company to return money directly to consumers.

What went wrong?

Between April and December 2025, people booking driving lessons online were not shown the full price upfront.

Instead, a mandatory £3 booking fee was added later in the booking process. This meant learners only saw the true cost at checkout, after choosing lessons and entering personal details.

The law is clear: if a fee is unavoidable, it must be included from the start. Adding it later is illegal.

What is drip pricing?

Drip pricing is when a business advertises a low price, then adds extra charges later on. These charges often “drip” in near the end of the checkout process, making the final price higher than expected.

Common drip pricing fees include booking fees, processing fees, and service or admin charges. If you can’t avoid the fee, it should already be in the price you first see before you go to check out.

Why drip pricing matters

Drip pricing can push people into decisions they wouldn’t have made if they’d known the real price upfront.

Government research shows hidden fees are common and costly. Nearly half of online businesses were found to use dripped fees. Consumers may be spending up to £3.5 billion extra each year because of them

When prices rise slowly, people are more likely to continue with a purchase, even if it ends up costing more than they planned.

What refunds will learners get?

The CMA has ordered more than £760,000 to be repaid to affected customers.

• The average refund is around £9

• Some people will get more, depending on how many lesson packages they bought

• No action is needed to get the money

The AA Driving School or BSM Driving School will contact customers and refund the money automatically. If the original payment card can’t be used, a cheque will be sent instead.