Industry Watch

Consumer Rights Roundup: CMA's First Drip Pricing Fine, Ofgem's £500M Debt Write-Off, and What Visa's AI Tools Mean for Your Disputes

Dan Warrener

Dan Warrener

— 3 min read
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Consumer Rights Roundup: CMA's First Drip Pricing Fine, Ofgem's £500M Debt Write-Off, and What Visa's AI Tools Mean for Your Disputes
Pricing, debt, and AI: three changes that quietly rewire how consumer cases get resolved.

This week brought some significant developments for UK consumers. From the CMA's landmark first financial penalty for drip pricing, to Ofgem writing off half a billion pounds in energy debt, here's what you need to know.

CMA Slaps AA With £4.2 Million Fine. And Your Hidden Fee Rights Just Got Stronger

The Competition and Markets Authority has imposed its first-ever financial penalty under the Digital Markets, Competition and Consumers Act: a £4.2 million fine on AA Driving School and BSM (both owned by the Automobile Association) for drip pricing.

What's drip pricing? It's when a business advertises one price, then gradually reveals additional charges as you go through the booking process. By the time you've invested the effort, the real price is significantly higher than what attracted you in the first place.

The AA also has to refund £760,000 to affected learner drivers.

What this means for you: The CMA now has real teeth. In just 12 months under its new powers, it has investigated 14 businesses, issued 157 warning letters, and imposed £4.7 million in fines. If you've been caught by hidden fees, whether that's a gym membership with surprise charges, a subscription with undisclosed costs, or any service where the final price didn't match what was advertised, you now have stronger grounds to challenge it.

The CMA has also confirmed it's investigating Adobe for potentially unfair early cancellation fees, and five companies for fake reviews. These are exactly the kinds of practices that affect everyday consumers.

Ofgem Writing Off £500 Million in Energy Debt: Are You Eligible?

Ofgem's Debt Relief Scheme is one of the biggest consumer interventions in years. Up to £500 million in energy debt will be written off for approximately 195,000 eligible households.

Who qualifies:

  • You're on means-tested benefits (Universal Credit, Pension Credit, etc.)
  • You accumulated more than £100 in energy debt between April 2022 and March 2024
  • The scheme is rolling out in phases from early 2026

If you're struggling with energy debt and think you might be eligible, it's worth checking directly with your energy supplier. And if your supplier isn't participating or is making it difficult, that's exactly the kind of dispute EvenStance can help with.

Visa's New AI Dispute Tools: What They Mean for Chargebacks

Visa processed 106 million disputes globally last year: a 35% increase since 2019. In response, they've launched six new AI-powered tools, including Dispute Intelligence (predictive AI for case analysis) and Compelling Evidence 3.0 (new evidence standards for fraud cases).

The consumer perspective: These tools are primarily designed to help banks and merchants resolve disputes faster, which sounds good. But there's a flip side: merchants now have more sophisticated tools to defend against chargebacks. If you're raising a chargeback, your evidence needs to be thorough and well-documented from the start.

Our chargeback module walks you through building a strong evidence package. The fundamentals haven't changed, clear documentation, timeline of events, and evidence of the merchant's failure to deliver, but it's now more important than ever to get it right first time.

Motor Finance Redress: 12.1 Million Agreements Now Eligible

A reminder that the FCA's motor finance redress scheme (PS26/3) is now active. If you took out car finance between 2007 and 2024, your lender may owe you compensation for undisclosed commission arrangements.

Key deadlines:

  • Post-April 2014 loans: lenders must act by 30th June 2026
  • Pre-April 2014 loans: lenders should contact you by end February 2027

The FCA estimates £7.5 billion in total redress. You don't need a claims management company. And the FCA is actively banning CMCs that use misleading tactics (they banned one this month for using unauthorised clips of Martin Lewis).

Looking Ahead: FOS Reform and the "Protection Gap"

The Government has proposed significant changes to how the Financial Ombudsman Service works. Currently, the FOS can rule against a company even if it technically followed the rules, based on what's "fair and reasonable." Under the new proposals, if a firm complies with FCA rules, the FOS would have to rule in the firm's favour.

Martin Lewis has warned this creates a "protection gap": situations where you've been treated unfairly, but the company hasn't technically broken any rules. The changes require legislation, so there's time for debate, but it's worth watching.

We'll keep tracking this and update our guidance as the proposals develop.

This roundup is compiled from our daily intelligence sweep of regulatory announcements, enforcement actions, and industry news. If you're dealing with any of the issues mentioned above, start a case on EvenStance: we'll help you figure out your next best step.

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