Whilst intrusive investigations and £multi-million fines by the CMA are commonplace in the sphere of competition law infringements, in a new milestone for consumer protection law, April 2026 marks the CMA’s first substantive financial penalty for a breach of consumer protection law.
The protection of the consumer has long been central to the CMA’s priorities, under both its competition and consumer law functions. But, until recently, there has been a vast mismatch in the CMA’s powers to tackle breaches under the two areas of law, with the CMA long frustrated by a lack of powers to enforce consumer law directly in the same way that it has been able to enforce anti-competitive conduct for decades.
Given this long-standing source of frustration at the CMA, it is of little surprise that the CMA’s first year since it gained new direct enforcement powers in relation to consumer law has been very busy. The CMA has issued a total of 157 warning and advisory letters and opened 14 investigations, and in one of those investigations, concerning drip pricing for driving school services, has now fined the AA £4.2 million as well as requiring the major roadside repair and recoveries brand to pay back more than £760,000 to customers directly. One thing is clear, the risk profile for breaching consumer law has dramatically changed.
What was the AA Investigation about?
In late 2025, amongst a spate of similar investigations, the CMA launched its investigation into Automobile Association Developments Limited (AADL) (trading as the “AA” and the “AA Driving School” and “BSM” and “BSM Driving School”). Following a five-month long investigation, the CMA has found that AADL infringed consumer protection law through a practice known as “drip pricing”. The AA and BSM websites failed to display the total price upfront to learner drivers booking driving lessons. The total cost, including a mandatory booking fee, was shown only once a user reached the online checkout. Such practices, known as “drip pricing”, are unlawful under consumer protection law following changes introduced by the Digital Markets, Competition and Consumers Act 2024 (DMCCA).
The DMCCA updates the previous law relating to unfair consumer practices. The fairness of commercial terms with consumers are generally assessed on a case-by-case basis, taking into account the relevant facts and whether the average consumer would have been misled in their decision-making. Certain practices, however, are considered automatically unfair, such as material omissions from a product advertisement, including price. Pricing is explicitly stated as being “material” information. In a change from the previous law, the total price must be advertised upfront – without any additional mandatory costs added after the consumer has already agreed to purchase. If a total price cannot be determined upfront, the means of calculating additional charges must be made clear.
There is no concern with a choice to add extra services at an additional cost where the additional cost is genuinely optional: the consumer has not been misled and is not bound to pay an additional amount they were not expecting. The focus with drip pricing rules is ensuring consumers understand the price they are committing to pay.
The CMA’s investigation found that over 80,000 AA and BSM website users were not shown the total price when booking driving lessons. The business has been required to issue over £760,000 in refunds to affected customers as well as paying the substantial financial penalty. Although a small refund to each customer in monetary terms, the refund will be automatic without users having to take any action, meaning swifter and more effective corrective action against the harms caused by non-compliant businesses.
With the CMA’s new powers, and the CMA’s recent enforcement activity, compliance with consumer protection law has been propelled to the top of the agenda for a consumer-facing brand’s risk management.
Join us to hear directly from the CMA
If you are a consumer-facing brand based in or near the North-West, join us at our Manchester office to hear directly from the CMA about its current and future enforcement priorities in consumer protection law.
You will also have the opportunity to ask the CMA questions and hear from our other interesting panel experts, including Professor Keeley Crockett, on topical matters such as how consumer protection law might apply to the use of agentic AI in selling to consumers.
Space is limited, so secure your spot now to avoid disappointment.
