AA and BSM ordered to refund learner drivers for hidden fees

AA and BSM ordered to refund learner drivers for hidden fees

The Competition and Markets Authority (CMA) has ruled that the AA and BSM driving schools must return £760,000 to over 80,000 customers who booked lessons online without seeing the full cost upfront. This decision comes after an investigation revealed the schools’ failure to display mandatory booking fees during the initial stages of the booking process. Automobile Association Developments was also penalized £4.2m for violating consumer law.

Practice of drip-pricing under scrutiny

The CMA’s probe, which began in November, uncovered that customers were shown lesson prices excluding a £3 fee until the checkout stage. This tactic, known as drip-pricing, led to confusion as learners only saw the additional charge at the final step. The watchdog emphasized that all mandatory fees must be visible from the start to prevent misleading consumers.

“Although the £3 booking fee was made clear to customers prior to their purchase, we acknowledge it should have also been displayed at the start of the online booking journey,” said a spokesperson for AA and BSM.

The schools responded by adjusting their website to highlight the fee more prominently and initiated refunds for affected customers. Sarah Cardell, CMA chief executive, noted that such practices can distort consumer decisions, especially when people are mindful of their spending. She 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.”