AA and BSM ordered to refund learner drivers for hidden fees

AA and BSM ordered to refund learner drivers for hidden fees

Competition watchdog investigates pricing practices

The Competition and Markets Authority (CMA) has revealed that AA and BSM driving schools will refund thousands of learners for not disclosing the full cost of lessons during online bookings. The investigation uncovered that customers were misled by initial price displays that excluded a mandatory booking fee, which was only revealed at the checkout stage.

The Automobile Association Developments was fined £4.2m for breaching consumer laws. Over 80,000 customers from both institutions will receive a total of £760,000, with an average payout of approximately £9 per person. A representative from the driving schools expressed disappointment with the findings but noted their full cooperation during the probe.

“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,” the spokesperson stated. “Having listened to the regulator, we made immediate changes to our website to make the £3 booking fee more prominent. We are now refunding all relevant customers.”

The CMA’s inquiry, initiated in November, targeted eight businesses, including AA and BSM. It identified a practice called “drip-pricing,” where fees were concealed until the final stage of a transaction. This tactic can trick consumers into accepting a lower initial price, only to face additional costs later.

“When a fee is required, the law stipulates that it should be integrated into the total cost from the beginning, not introduced at the final checkout stage,” explained CMA chief executive Sarah Cardell. “At a time when people are watching every pound, dripped fees can tip the balance.”