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CMA Fines AA £4.2M in First Use of DMCC Act Consumer Powers

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Why it matters

The UK Competition and Markets Authority has fined Automobile Association Developments Limited £4.2 million for drip pricing violations under the Digital Markets, Competition and Consumers Act 2024. Between April and December 2025, The AA—which operates AA and BSM Driving Schools—advertised driving lessons online without including mandatory £3 booking fees in initial prices. This marks the CMA's first use of its new direct fining powers under the DMCC Act, which took effect in April 2025. As part of a formal settlement, The AA agreed to repay over £760,000 to more than 80,000 affected consumers and received a 40% fine discount for cooperation.

The DMCC Act substantially expanded the CMA's enforcement authority beyond traditional competition law. The regulator can now impose fines up to 10% of global turnover, issue direct redress orders, and settle cases without court involvement—powers previously unavailable. The AA's settlement represents the first formal resolution under these new procedures.

Attorneys advising consumer-facing businesses should treat this as a warning signal. The CMA has launched 14 investigations since the Act took effect and issued warning letters to over 100 firms across travel, ticketing, and retail sectors. Drip pricing, fake reviews, and hidden subscription terms are enforcement priorities. Any business displaying prices online should audit compliance immediately, particularly around mandatory fees, charges, and terms that must appear before checkout.

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