Major Companies Face CMA Probe Over Pricing Tactics
The Competition and Markets Authority has launched investigations into eight prominent UK companies, including AA Driving School and Gold's Gym, over concerns about unfair pricing practices that could be breaking consumer protection laws.
The crackdown comes at a time when household budgets are under significant pressure, with the regulator vowing to protect consumers from misleading prices and illegal pressure selling across multiple sectors.
Driving Schools Under Scrutiny
AA Driving School and BSM Driving School, both operated by Automobile Association Developments Limited, are being investigated for allegedly failing to display mandatory fees clearly on their websites until the final stages of the purchase process.
The investigation comes as learner drivers face increasing challenges in booking lessons and taking tests, with pandemic-related backlogs creating significant delays. The situation has been exacerbated by third-party websites buying up available slots and reselling them at premium prices.
In response to the driving test crisis, the government announced last week that military examiners would be brought in to help clear the waiting list.
An AA Driving School spokesperson defended their practices, stating: "We are comfortable that the £3 booking fee for lessons is already transparent and in line with the CMA's rules and are more than happy to additionally notify customers earlier in the journey as well, which we have already done."
Broader Investigation Across Multiple Sectors
The CMA's investigation extends beyond driving schools to include several other well-known businesses:
- Gold's Gym is being probed over introducing a one-off sign-up fee halfway through the membership process
- Homeware retailers Wayfair, Appliances Direct, and Marks Electrical are under investigation to determine whether their time-limited sales ended when advertised
- The regulator is also examining whether customers are being automatically opted into purchasing additional services without clear consent
Sarah Cardell, Chief Executive of the CMA, emphasised the importance of transparency: "At a time when household budgets are under constant pressure and we're all hunting for the best deal possible, it's crucial that people are able to shop online with confidence, knowing that the price they see is the price they'll pay, and any sales are genuine."
She added that whether consumers are spending money on concert tickets, driving lessons, gym memberships, or home furnishings, they deserve a fair deal and protection from misleading practices.
CMA's Commitment to Consumer Protection
The investigations mark an important milestone in the CMA's ongoing work to ensure businesses comply with consumer protection laws. Since launching their new regime, the regulator has been working to help businesses understand their legal obligations while making clear they would take swift action against potential breaches.
Cardell warned that any businesses breaking consumer law should be in no doubt that the CMA will stamp out illegal conduct to protect both consumers and fair-dealing businesses. She confirmed that this represents just the start of their broader work across the economy.
The CMA's action signals a tougher approach to enforcement as consumers continue to face financial pressures, with the regulator determined to ensure transparency and fairness in online shopping experiences across all sectors.
