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 funds to over 80,000 learners who were misled about lesson costs. The investigation revealed that customers booking online were not shown the full price upfront, with the mandatory booking fee only appearing at checkout. This practice, termed “drip-pricing,” violates consumer law by obscuring additional charges until the final stage.

Automobile Association Developments has been fined £4.2m for breaching regulations. The total refunds amount to £760,000, with each affected customer receiving an average of £9. A representative from AA Driving School expressed disappointment with the findings but noted full cooperation during the process. They stated: “The £3 booking fee was visible before purchase, but it should have been highlighted earlier in the booking process. We updated our website immediately to address this and are now processing refunds.”

“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,” said CMA chief executive Sarah Cardell. She emphasized that such hidden charges can influence decision-making, especially during times of financial scrutiny.

The CMA’s probe targeted eight businesses, including AA and BSM Driving Schools, uncovering deceptive pricing tactics. Customers often selected lessons, set dates, and provided details without seeing the total cost, leading to unexpected fees at the end. This has sparked calls for greater transparency in online bookings.