AA and BSM Ordered to Refund Learner Drivers for Hidden Fees
The owner of the AA and BSM driving schools must issue refunds to thousands of learner drivers after failing to disclose the full cost of lessons upfront during online bookings, following an investigation by the Competition and Markets Authority (CMA).
Automobile Association Developments has also been fined £4.2 million for breaching consumer law, the CMA confirmed.
More than 80,000 customers of the AA Driving School and BSM will collectively receive £760,000 in refunds, averaging approximately £9 per customer.
A spokesperson for AA driving schools expressed disappointment with the investigation's outcome but stated the company "cooperated fully" throughout the process.
The AA commented:
"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.
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."
Details of the CMA Investigation
The CMA's inquiry revealed that individuals booking lessons online between April and December of last year were initially shown prices excluding a mandatory booking fee.
This fee was only disclosed at the checkout stage, after customers had selected lessons, chosen times, and entered personal details.
This practice, known as "drip-pricing," is illegal and can mislead consumers into selecting a service based on a lower initial price, which is then increased later.
CMA chief executive Sarah Cardell 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."
"At a time when people are watching every pound, dripped fees can tip the balance."
The watchdog's investigation covered eight businesses, including AA Driving School and BSM Driving School.
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