Two of the UK’s best-known driving school brands have been fined after failing to make key booking fees clear to customers.

Regulators say the landmark case should serve as a warning to businesses across multiple sectors.

Booking or admin fees added to the headline cost of tickets and services have become a stalwart tool for increasing revenue whilst lowering headline prices across all industries, and a bugbear for consumers.

Going the extra mile

The parent company of AA Driving School and British School of Motoring (BSM) has been penalised following an investigation by the Competition and Markets Authority (CMA), which found that additional charges were not properly disclosed upfront.

Its investigation found that between April and December 2025, the AA and BSM initially displayed learner-driver prices that did not include the mandatory booking fee.

New customers were only shown the full price at checkout, after selecting lessons, choosing times, and entering personal details, at which point a £3 administration or booking fee was added.

Regulators said this amounted to so-called “drip pricing”, where unavoidable costs are introduced late in the transaction, potentially misleading customers.

The CMA has taken a firm stance, warning that businesses must be fully transparent about pricing from the outset.

Chief executive 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.”

She added that hidden fees can have a real impact on consumers, particularly during a cost-of-living squeeze, warning they can “tip the balance” when people are deciding what they can afford.

“At a time when people are watching every pound, dripped fees can tip the balance. And when it comes to something as important – and costly – as learning to drive, people deserve clarity”.

The case is particularly significant as it marks the first time the CMA has imposed a financial penalty using new consumer enforcement powers, signalling a tougher approach to unclear pricing practices.

 

 

Yes but no

While the AA acknowledges the issue, it has defended its approach.

In response to the ruling, a spokesperson for AA Driving School said the booking fee “was made clear to customers prior to their purchase”, but accepted it should have been displayed earlier in the booking process.

The company confirmed it has now:

• Updated its website to show fees more prominently
• Agreed to refund affected customers
• Cooperated fully with the investigation

It added it was “disappointed with the outcome”, while maintaining that consumer protection has long been a priority for the business.

For learners

The case highlights both the financial pressures facing learner drivers and the high level of competition driving schools face in attracting customers.

Many learners already face a stressful time finding instructors who are not booked up for months, finding driving test slots amid historic record waiting times, and then the increasing costs of actually running and insuring their own car once they pass the test.

According to the RAC, learning to drive in the UK typically costs between £1,500 and £2,500+, with the average learner spending around £ 1,000 to £2,000 on a provisional licence, lessons and tests.

This is based on 45 hours of professional tuition (at £30–£ 40+ per hour) and 22 hours of private practice.

Consumer groups say hidden fees, however small, can make it harder to compare providers accurately and budget effectively.

The CMA has highlighted broader concerns, noting that so-called drip pricing is common across online markets.

Previous estimates suggest nearly half of online businesses use hidden or late-added fees, costing UK consumers billions of pounds each year.

Under scrutiny

The enforcement action comes at a time of increased pressure on businesses from the consumer watchdog to ensure accurate advertising, amid the growing use of misleading customer reviews and headline pricing, as consumers increasingly utilise comparison sites and search engines to find cost-effective, high-quality products and services.

Against this backdrop, regulators say clear pricing is more important than ever to ensure fair competition and protect consumers.

Drip fees are widespread, according to statistics from the Department for Business and Trade (DBT), which showed 46% of businesses use hidden charges.

As a result, shoppers are estimated to spend up to £3.5bn each year.

The CMA has warned other businesses that failing to disclose full costs upfront could lead to similar action, stressing that under its strengthened powers, “it will never pay to break the law or treat consumers unfairly”.

 

A warning

While AA Driving School and British School of Motoring remain major players in the national driving school market, the case underscores that all established brands, large or small, are not immune to scrutiny.

The Competition and Markets Authority (CMA) has ordered more than 80,000 customers to be refunded the ‘drip pricing’ fees, with the average payout around £9, according to the CMA, though the amount will vary depending on the lesson packages purchased.

In total, it will amount to around £750,000, while the AA business has separately been fined £4.2m.

For customers, in this case learner drivers, the message is clear: do your own homework and check the full cost before booking.

Meanwhile, for businesses, the message from regulators is even clearer: all mandatory fees must be visible from the very start—or face the consequences.