UK’s CMA fines Automobile Association Developments £4.2m for drip pricing under new consumer enforcement powers
UK online businesses with mandatory fees now face direct CMA fines without court process
Change
UK’s Competition and Markets Authority fined Automobile Association Developments £4.2m and ordered £760,000 in customer refunds — the first penalty imposed under the Digital Markets, Competition and Consumers Act 2024, which allows the regulator to levy fines without a court order.
Why it matters
The CMA now holds direct enforcement authority over consumer pricing law — no court process required. Any mandatory fee not displayed from the first screen of an online booking journey is exposed to this power. The regulator is actively reviewing 100 UK businesses across retail, travel, ticketing, and delivery, with seven investigations still open.
Implications
- — UK online retailers, booking platforms, and ticketing operators that charge mandatory service or booking fees — risk fines up to 10% of global turnover and forced customer refunds under direct CMA enforcement — any mandatory ancillary charge not visible at the first step of the booking journey is now an active compliance liability.
- — Legal and compliance teams at UK consumer-facing businesses with online checkout flows — the CMA has confirmed it can act without court involvement and has seven active investigations outstanding — any unremediated drip pricing practice carries quantified enforcement risk today, not at future legislative review.
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