The UK’s Competition and Markets Authority (CMA) has ordered the AA and BSM driving schools to refund millions of pounds to learner drivers after finding they concealed mandatory fees during online booking processes. Parent company Acromas Holdings faces a £1.2 million fine for the violations.
Investigators discovered the schools advertised ‘from £25’ lesson rates without disclosing compulsory booking fees of up to £35 until checkout. ‘This practice misled consumers about the true cost of driving lessons,’ a CMA spokesperson told reporters. The regulator estimates over 150,000 learners may be eligible for refunds.
The enforcement action follows a 2022 CMA market study that found 60% of driving schools used drip pricing tactics. Analysts note this marks the first major penalty under the Digital Markets, Competition and Consumers Bill provisions taking effect this year. ‘This sends a clear signal about transparency requirements for online services,’ said consumer rights analyst Marion Willshire.
Industry sources suggest the ruling could prompt wider reforms in vocational education pricing. The DVSA has announced plans to review pricing disclosure standards across all approved driving instructors by Q3 2024.