AA and BSM forced to repay learner drivers following watchdog investigation
Following a CMA investigation, Automobile Association Developments Limited admitted to implementing so-called “drip pricing” and has been forced to pay £760,000 back to customers
More than 80,000 learners are due a share of hundreds of thousands of pounds as the owner of the AA and British School of Motoring (BSM) driving schools has been instructed to refund its customers. This follows an investigation by the Competition and Markets Authority (CMA) which found that the full price of driving lessons was not clearly disclosed when learners booked their slots online.
In November 2025, the CMA launched a review into the practices of Automobile Association Developments Limited, which owns both the AA Driving School and BSM. It found that between April and December 2025, learner drivers booking lessons were displayed prices that did not include the mandatory £3 booking fee – a practice known as “drip pricing”.
Chief executive of the CMA, Sarah Cardell, said: “If a fee is mandatory, the law is clear: it must be included in the price from the very start – not added at checkout – so consumers always know what they need to pay.”
“At a time when people are watching every pound, dripped fees can tip the balance,” Cardell continued. “And when it comes to something as important – and costly – as learning to drive, people deserve clarity.
Now, the AA Driving School and BSM have been ordered to refund learners a total of £760,000, with the average payout expected to be around £9. Automobile Association Developments Limited has also received a £4.2 million fine, which has been discounted from £7 million after the firm admitted to breaking consumer law.
Nevertheless, a spokesperson for the AA driving schools said the business was “disappointed with the outcome of the investigation”.
“Although the £3 booking fee was made clear to customers prior to their purchase, we acknowledge it should have also been displayed at the start of the online booking journey,” the spokesperson said. “Having listened to the regulator, we made immediate changes to our website to make the £3 booking fee more prominent. We are now refunding all relevant customers.”
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