CMA issues first consumer protection fine under the DMCCA

The CMA has today ordered AA Driving School and BSM Driving School -- both owned by Automobile Association Developments Limited (AA) -- to refund over £760,000 to more than 80,000 customers and pay a £4.2 million fine for drip pricing. The case represents the first financial penalty imposed by the CMA via its new direct enforcement powers under the Digital Markets, Competition and Consumers Act 2024 (DMCCA). 

A landmark use of new enforcement powers

The DMCCA grants the CMA direct powers to enforce consumer protection law, including the ability to impose fines of up to 10% of a company's global turnover. Since April 2025, the CMA has opened investigations into 14 businesses across a range of sectors, signalling its willingness to make full use of these new tools. The CMA’s AA investigation, which was launched in November 2025, is the first in which it has used these powers to impose both a direct financial penalty and order redress for consumers.

What the CMA found

The CMA's investigation found that customers booking driving lessons on the AA and BSM websites between April and December 2025 were shown prices that did not include a mandatory £3 booking fee. The booking fee was added later in the customer journey -- after lessons had been selected, times chosen, and personal details entered. Under UK consumer protection law, businesses must display all unavoidable mandatory charges upfront in the headline price of a product or service from the outset. Including such fees later in the purchasing process is not permitted.

Settlement and the 40% discount

AA admitted that it had breached UK consumer protection law and agreed to settle the case. As a result, it received a 40% reduction to its financial penalty -- bringing the fine down from £7 million to £4.2 million. The CMA’s settlement mechanism allows a party under investigation to admit to a breach, agree to pay a penalty, and consent to a streamlined administrative procedure for the remainder of the investigation. For businesses facing a CMA investigation, this is a strategic decision that should be carefully considered: the potential for meaningful financial savings must be weighed against the consequences of admitting liability (including private enforcement risks).

Outlook

This case marks the beginning of the CMA's direct enforcement of consumer protection laws. The CMA's willingness to impose a multimillion-pound penalty and order significant consumer redress in its very first case under the new regime sends a clear public message on how it is approaching enforcement under the new regime. Businesses should expect enforcement activity to continue at pace and should be reviewing their pricing practices and customer journeys now to ensure robust compliance.

If you have questions about how the CMA's new enforcement powers may affect your business, or would like support reviewing your pricing practices for compliance, please contact a member of our consumer protection team.