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 AA and BSM driving schools must return funds to over 80,000 customers after failing to reveal all costs upfront during online bookings. The watchdog investigated the practice, which involved concealing a mandatory booking fee until the final checkout step, misleading learners about the total price.
Fines and Refunds
Automobile Association Developments has been fined £4.2 million for violating consumer laws. As part of the settlement, the schools will distribute £760,000 in refunds, averaging around £9 per customer. A spokesperson for the institutions expressed disappointment with the outcome but confirmed full cooperation with the investigation.
“Although the £3 booking fee was communicated to customers beforehand, it should have been highlighted at the beginning of the online booking process. We adjusted our website immediately to make this fee more visible and are now processing refunds for affected individuals,” the representative stated.
Investigation Details
The CMA’s probe, initiated in November, revealed that between April and December last year, prospective learners were shown lesson prices without including the £3 fee during initial selections. This fee only appeared at the checkout stage, after users had finalized their choices and entered personal information. The tactic, termed “drip-pricing,” is deemed unfair as it can trick customers into accepting a service at a lower price before revealing additional charges.
CMA’s Stance
CMA chief executive Sarah Cardell stressed that mandatory fees must be displayed from the outset, ensuring transparency for consumers. “When people are mindful of every expense, hidden charges can significantly impact their decision-making,” she noted. The authority emphasized that such practices undermine trust and fairness in the market.
