All fine, provided that the organisation charges the same for hire of the aircraft as it does for dual insruction and for a introductory lesson.
e.g. £100 gets you 1 hour be it PPL or Solo student or dual training or trial lesson.
The fact that the student pays the instructor fee (charged in addition to the aircraft hire cost) but the instructor gives it back to the club (in other words the club with his permission never passes it on to him in the first place) means that one can not escape from the fact that the student paid for the services of the instructor.
Regards,
DFC