The Competition and Markets Authority (“CMA”) has started actively using its enhanced enforcement powers under the Digital Markets, Competition and Consumers Act 2024 (“DMCCA”). Under the new regime, the CMA can now determine breaches of consumer law directly, without needing to litigate through the courts, and can impose remedies including significant financial penalties. These powers are intended to strengthen consumer protection and increase consumer trust in markets.

In November 2025, the CMA launched an investigation into eight businesses, including Automobile Association Developments Limited (“Automobile Association”), which owns the AA and BSM driving schools. The CMA found that between April and December 2025, over 80,000 consumers were affected by being shown prices excluding a mandatory booking fee, with the total price only becoming clear at checkout when booking driving lessons. This practice, known as “drip pricing”, is prohibited under the DMCCA, which requires consumers to be shown the total price upfront. Following the investigation, the CMA issued a Final Infringement Notice against the Automobile Association.

As part of the outcome, the Automobile Association was required to refund more than £760,000 to consumers and pay a £4.2 million fine, bringing the total cost to nearly £5 million. This was the first financial penalty imposed by the CMA under its new DMCCA powers, which allow fines of up to 10% of annual global turnover. The company received a 40% reduction from the original £7 million penalty due to its early admission, cooperation with the CMA, and an agreement not to appeal.

The case reflects the CMA’s increasing willingness to use its expanded enforcement powers to tackle consumer protection breaches. It also demonstrates the benefits of early engagement and cooperation with regulators, which can result in substantial reductions in financial penalties. The case also demonstrates a practical CMA approach given the number of consumers and the level of compensation to each of them was facilitated through direct consumer compensation.

Co-authored by Hana Sattar