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The UK's Competition and Markets Authority (CMA) has fined the AA £4.2m and ordered the company to make payments to more than 80,000 learner drivers. The fine was imposed for not showing the full price of lessons at the time of booking, a practice known as 'drip pricing'.The CMA found that learner drivers were not shown the total price upfront when booking lessons online, which is required under UK consumer law. Instead, the driving schools were introducing a mandatory fee later in the process.Sarah Cardell, the chief executive of the CMA, stated: 'If a fee is mandatory, the law is clear: it must be included in the price from the very start – not added at checkout – so consumers always know what they need to pay.' The regulator said that the amount repaid to individual customers will vary depending on how many lessons they bought, but the average payout is expected to be about £9. The AA has cooperated with the CMA and admitted to breaking the law, which reduced the potential financial penalty by 40%.This is the first financial penalty the CMA has imposed for a breach of consumer law since being granted new powers to enable it to decide whether to take action rather than having to go through the courts.

The UK's Competition and Markets Authority (CMA) has initiated investigations into five companies, including Autotrader and Just Eat, due to concerns about their handling of online reviews. The CMA is examining whether these companies have failed to adequately address fake and misleading reviews on their platforms. The investigations focus on several key issues: Autotrader and Feefo are being looked into for potentially excluding one-star reviews from being published; Dignity is under scrutiny for allegedly asking staff to write positive reviews; Just Eat is being investigated for possibly inflating star ratings; and Pasta Evangelists is accused of offering discounts in exchange for five-star reviews. CMA Chief Executive Sarah Cardell emphasized the importance of genuine reviews, stating, 'Fake reviews strike at the heart of consumer trust – with many of us worrying about misleading content when looking at reviews online.' The CMA has not yet reached any conclusions but aims to ensure that companies comply with UK consumer law. The investigations bring the total number of businesses under review to 14. If the CMA finds that a company has broken the law, it can enforce changes and impose fines of up to 10% of global turnover. The UK consumer body Which? has highlighted that 89% of people rely on reviews when making purchasing decisions, underscoring the significance of this issue. The CMA's new powers under the Digital Markets, Competition and Consumers Act allow it to address unfair practices related to online reviews without needing to go to court. This crackdown is part of a broader effort to protect consumers and maintain trust in online marketplaces.