The UK’s Competition and Markets Authority (CMA) has launched an investigation into AA and BSM Driving Schools over the way they present mandatory booking fees to customers. The core issue is whether the £3 fee charged for each driving lesson booking is clearly displayed upfront, or added later in the purchase process.
What the Investigation Focuses On
The CMA is examining whether the driving schools are violating consumer protection laws by not including the £3 booking fee in the initial advertised price. This practice, known as “drip pricing,” involves showing a lower price first and then adding mandatory charges at the checkout stage.
AA, which owns both AA Driving School and BSM, claims it already complies with transparency rules and has taken steps to notify customers earlier in the booking process. However, the CMA is gathering evidence to determine if the current practices are sufficient.
Broader Crackdown on Online Pricing Tactics
The investigation into the driving schools is part of a larger crackdown on deceptive online pricing across multiple sectors. The CMA is also scrutinizing ticket resellers StubHub and Viagogo, as well as homeware retailers Wayfair and Appliances Direct, for similar tactics.
The review, which began in April, assessed over 400 businesses for compliance with price transparency rules. The CMA identified widespread concerns, including drip pricing and the use of misleading countdown timers, both of which are banned under the new Digital Markets, Competition and Consumers Act (DMCCA) 2024.
Regulatory Action and Consumer Protection
Beyond the formal investigations, the CMA is sending advisory letters to 100 businesses outlining concerns about their use of additional fees and sales tactics. This action signals a broader effort to enforce transparency in online pricing.
According to CMA Chief Executive Sarah Cardell, the goal is to ensure consumers can shop online with confidence, knowing the price they see is the final price they’ll pay. The CMA intends to take decisive action against businesses that violate consumer law.
“At a time when household budgets are under constant pressure… it’s crucial that people are able to shop online with confidence,” said Cardell. “Any businesses who break consumer law should be in no doubt we will stamp out illegal conduct.”
The investigations and advisory letters represent a significant push for greater price transparency in the UK’s online marketplace. The CMA’s actions underscore the importance of clear, upfront pricing to protect consumers and ensure fair competition
