AA and BSM ordered to refund learner drivers for hidden fees

AA and BSM Driving Schools Ordered to Refund Learner Drivers for Unrevealed Fees

Regulator Investigates Hidden Charges in Online Lesson Bookings

The Competition and Markets Authority (CMA) has ruled that the AA and BSM driving schools must issue refunds to over 80,000 learners who were charged undisclosed fees during online lesson bookings. The investigation revealed that mandatory booking fees were not shown upfront, misleading customers about the total cost. As a result, the AA driving schools were fined £4.2 million for violating consumer laws. The total refunds amount to £760,000, with an average payout of £9 per affected customer.

Automobile Association Developments admitted to the oversight but stated it was “disappointed with the investigation’s outcome” while “fully cooperating” with the process. A spokesperson noted that the £3 booking fee was visible before purchase, though it was not highlighted during the initial booking steps. The company promptly updated its website to emphasize the fee and is now processing refunds for all impacted clients.

“When a fee is required, it must be included in the price from the beginning,” emphasized CMA chief executive Sarah Cardell. “Adding it at checkout can confuse consumers, especially when they are budgeting carefully.” She further warned that such practices could influence decisions, making customers pay more than anticipated.

The CMA’s probe uncovered that between April and December of the previous year, new users were shown lesson prices without the mandatory booking fee until the final checkout stage. This tactic, termed “drip-pricing,” involves revealing additional charges at the last moment to sway choices. The watchdog’s action targets eight businesses, including AA and BSM, for deceptive pricing strategies.