More than 80,000 learner drivers are set to receive refunds after the Competition and Markets Authority (CMA) found that AA Driving School and BSM Driving School used an illegal pricing practice known as drip pricing.
The regulator has ordered the businesses to repay more than £760,000 to affected customers. If you booked driving lessons with either school between 6 April and 15 December 2025 and were affected by the pricing, you do not need to make a claim. Your refund should happen automatically.
What happened?
The CMA investigated AA Driving School and British School of Motoring (BSM), both owned by the AA, after concerns about the way lesson prices were displayed online.
Between 6 April and 15 December 2025, customers booking lessons were initially shown prices that did not include a mandatory booking fee. The compulsory charge was only added later in the booking process.
Under UK consumer law, businesses must display the full price, including any unavoidable fees, from the outset. Hiding mandatory charges until checkout is known as drip pricing and is illegal.
The AA admitted breaching consumer law and agreed to settle the investigation.
What is drip pricing?
Drip pricing happens when a business advertises one price but only reveals mandatory charges later in the buying process.
For example:
- Booking fees
- Administration fees
- Processing charges
- Compulsory service fees.
These charges cannot be avoided, so they should be included in the headline price from the very beginning.
Research has estimated that hidden mandatory fees cost UK consumers between £595 million and £3.5 billion every year, with almost half of online businesses using some form of dripped fee.
Who is entitled to a refund?
You could receive money back if you:
- Booked driving lessons through AA Driving School or BSM
- Made your booking between 6 April and 15 December 2025
- Were initially shown lesson prices that excluded the mandatory booking fee.
More than 80,000 customers are expected to receive refunds.
How much could you receive?
The amount depends on how many lesson packages you purchased. The CMA says the average refund will be around £9, although some customers will receive more. While this may not seem like a large amount, the case is significant because it reinforces that businesses must display honest, transparent pricing.
Why has the CMA taken action?
This is one of the first major consumer enforcement cases under the CMA’s strengthened powers, and the first time it has used those powers to impose a financial penalty for a breach of consumer law.
Alongside ordering refunds for customers, the regulator also fined the AA £4.2 million.
The case forms part of a wider crackdown on drip pricing and other misleading online sales practices.
Do you need to do anything?
No. Affected customers do not need to submit a claim or complete any forms.
The AA will:
- Contact eligible customers by email or letter
- Automatically refund the payment to the original payment card where possible
- Send a cheque if the original payment method cannot be used.
The company has until 15 April 2027 to complete all refunds.
What if you're still waiting for your refund?
Refunds are expected to be completed by 15 April 2027.
The CMA is not responsible for issuing payments. If you believe you’re eligible and have not received a refund or any communication from the AA, you should contact AA Driving School or BSM directly.
