AA And BSM Driving Schools Ordered To Refund 80,000 Learner Drivers After Failing To Disclose Full Lesson Costs

AA and BSM driving schools ordered to refund 80,000 learner drivers after failing to disclose full lesson costs More than 80,000 learner drivers are set to receive refunds after two major UK driving schools failed to clearly display the total cost of lessons, following an investigation by the UK competition watchdog.

The Competition and Markets Authority (CMA) found that AA Driving School and BSM Driving School breached consumer protection laws by not including a mandatory booking fee in their advertised prices. According to the investigation, customers booking lessons online between April and December 2025 were initially shown prices that excluded a compulsory £3 booking fee. This additional charge only appeared later in the checkout process—a practice known as “drip pricing.” The CMA said this approach misled consumers by making lessons appear cheaper than they actually were, as the full cost was not visible from the outset. As a result of the ruling, the driving schools have been ordered to refund more than £760,000 in total to affected customers. Individual payouts will vary, but the average refund is expected to be around £9 per learner.

In addition, the parent company has been fined £4.2 million for breaching consumer law. Customers do not need to take any action, as refunds will be issued automatically to the original payment method or via cheque where necessary. CMA chief executive Sarah Cardell said the law is clear that all mandatory fees must be included upfront in advertised prices. She warned that hidden charges can significantly influence consumer decisions, especially at a time when households are under financial pressure.

The case marks the first time the CMA has issued a financial penalty using its strengthened enforcement powers under recent consumer protection legislation. A spokesperson for the AA acknowledged that while the booking fee was disclosed before purchase, it should have been made clear at the very start of the booking process. The company said it has since updated its website to ensure greater transparency and confirmed it is cooperating fully with the refund process. The CMA said the action forms part of a broader effort to tackle misleading online pricing practices across multiple industries. Investigations into several other companies are ongoing as regulators seek to clamp down on hidden fees.