The AA agrees a fine in the first CMA consumer protection enforcement under the DMCCA

On 15 April 2026, the Competition and Markets Authority (CMA) gave a Final Infringement Notice to Automobile Association Developments Limited (the Automobile Association) in the UK, following the settlement of its investigation into suspected infringements of consumer law in relation to the presentation of mandatory booking fees. The settlement marks a swift resolution to the CMA’s investigation and the first financial penalty imposed for breaches of consumer law under the new regime.

 

Background: prohibition of drip pricing and settlement under the DMCCA

The Digital Markets, Competition and Consumers Act 2024 (the DMCCA) enables the CMA to investigate a myriad of unfair online pricing practices and impose substantial penalties on companies breaching consumer protection obligations. Similar to its competition law enforcement powers, the DMCCA permits the CMA to impose fines of up to 10% of a company’s global turnover.

As under the competition regime, companies that engage constructively with the CMA may secure reduced penalties and early resolution through settlement, which requires an admission of infringement and waiver of appeal rights against the Final Infringement Notice. The settlement process can be contrasted with the process of providing undertakings to the CMA which, if accepted, enable companies to agree to change their commercial practices to assuage the CMA’s concerns, but without an admission of breach (similar to “commitments” under the competition regime).

Following the DMCCA’s entry into force, the CMA conducted a major cross-economy review of more than 400 businesses regarding price transparency and similar practices. The CMA identified potential compliance concerns, including the use of drip pricing, and opened investigations into 8 businesses in November 2025.¹ One investigated company was the Automobile Association, which owns the AA Driving School and BSM Driving School. So-called “drip pricing” takes place where hidden mandatory charges, which are not initially displayed in the headline price, are added at the point of purchase.² The DMCCA requires all companies to ensure that the total price (and any payments the consumer will necessarily incur) are clearly presented in the initial invitation to purchase.

 

The Automobile Association investigation and settlement

The CMA’s investigation into the Automobile Association found that more than 80,000 learner drivers were not shown the total price when booking lessons online. In particular, a mandatory GBP3 booking fee was being added only at checkout, after lessons had already been selected and personal details entered.

The regulator noted the Automobile Association’s constructive engagement and prompt remedial action during the investigation. In return for its cooperation, admission of infringement, and agreement to early settlement of the case, the Automobile Association received a 40% reduction in its penalty.

Under the settlement agreed with the CMA, the Automobile Association must refund affected customers over GBP760,000 and pay a fine of GBP4.2 million for breaching consumer law. The Automobile Association is also required to write to affected consumers and automatically refund the card used at purchase, without any action required from the consumer to secure their refund.

The case represents the first financial penalty imposed by the CMA for a breach of consumer law using its new DMCCA enforcement powers.³ With a total fine of almost GBP5 million even after a 40% reduction obtained through the settlement process, it is clear the CMA is embracing its powers to impose stringent penalties under the new regime in an effort to protect consumers.

 

An encouraging approach to timing under the new regime

The DMCCA does not impose any fixed statutory deadlines under which the CMA is required to complete its consumer protection investigations. While it does impose a general duty of expedition on the CMA to conduct its investigations, this may come as cold comfort to companies finding themselves the subject of a CMA investigation without any fixed end points.

The Automobile Association investigation may nevertheless offer some reassurance that the CMA takes its duty of expedition seriously. The investigation was opened on 17 November 2025 and settlement was reached five months later, on 15 April 2026. Care should be taken not to read too much into the timeline involved in the Automobile Association investigation, given the limited sample size and this being the first case in which the CMA has imposed fines under the DMCCA. However, it is nevertheless instructive that it concluded significantly faster than previous investigations undertaken by the CMA when using its competition law powers. It particularly compares favourably with previous CMA investigations into cartels and other anticompetitive conduct, which can frequently take upwards of 2-3 years to close - even in circumstances where a settlement process has been pursued.⁴

The last 18 months has seen the CMA overhauling some of its procedures, to make them faster and more predictable. This may be a good example of that direction of travel.

If you would like to know more about the CMA’s powers under the DMCCA regime or would like us to provide advice on your compliance under the new regime, please contact the authors or your usual DLA Piper contact.

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¹ CMA launches major consumer protection drive focused on online pricing practices
² Para. 1.10, CMA209 Unfair commercial practices, price transparency
³ CMA orders the AA and BSM driving schools to refund learner drivers over drip pricing
⁴ Light fittings sector: anti-competitive practices