Learner drivers to get booking fees refunded over crackdown on drip-pricing

Two AA-owned driving schools have been ordered by the UK competition watchdog to refund more than 80,000 customers and have been fined £4.2 million over drip-pricing.

The Competition and Markets Authority (CMA) said the AA Driving School and BSM Driving School did not include a mandatory £3 booking fee in upfront prices.

This is an illegal practice known as drip-pricing.

The amount repaid to individuals will vary depending on how many lesson packages they bought, with the average being about £9.

This will total more than £760,000.

The refunds and fine combined will almost be £5 million.

This is the first financial penalty the CMA has imposed for breach of consumer law since it was handed new enforcement powers.