AA fined £4.2m over drip pricing for learner drivers

(Sharecast News) - The AA has been ordered to refund more than 80,000 customers and pay a fine of over £4.2m after learner drivers were given inaccurate pricing information before booking their lessons. According to a Competition and Markets Authority statement on Wednesday, the AA Driving School and BSM Driving School - both owned by the AA - didn't show learners the total price upfront, as required by law, and included mandatory fees later in the booking process.

The investigation, which began in November, rules that the AA must refund affected customers over £760,000 and pay a fine of £4.2m for breaking consumer law.

The fine could have been 40% higher, but the AA engaged constructively with the CMA and admitted to breaking the law.

This is the first financial penalty the competition regulator has handed out for a breach of consumer law using its new enforcement powers.

"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," said CMA chief executive Sarah Cardell.

"With our new powers, it will never pay to break the law or treat consumers unfairly. Where the rules are ignored, we'll step in to put things right," she said.