Today, the Competition and Markets Authority (“CMA”) ordered the AA, which owns both AA Driving School and BSM Driving School, to refund more than 80,000 learner drivers over £760,000, and pay a fine of £4.2 million, bringing the total bill to nearly £5 million. The offence? A mandatory £3 booking fee that was not included in the headline price shown to customers at the start of their online journey.
This is the first financial penalty the CMA has imposed under new direct enforcement powers granted to it in the Digital Markets, Competition and Consumers Act 2024 (“DMCCA”). It will not be the last.
Continue reading “Driving away drip pricing: How a £3 booking fee turned into a £5 million fine”