AA and BSM ordered to refund learner drivers for hidden fees

AA and BSM ordered to refund learner drivers for hidden fees

Following a probe by the competition watchdog, the AA and BSM driving schools are required to issue refunds to over 80,000 learners who were misled about the full cost of lessons during online bookings. The Competition and Markets Authority (CMA) also imposed a £4.2m fine on Automobile Association Developments for violating consumer protection laws.

Consumers who booked lessons between April and December last year were initially presented with prices that excluded a mandatory £3 booking fee. This charge was only revealed at the final checkout stage, after customers had selected their lessons, set times, and entered personal details. The CMA identified this as “drip-pricing,” a tactic that can deceive individuals into accepting a service at a lower initial cost, only to face additional charges later.

“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,” said a representative from AA and BSM driving schools. “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 total refunds amount to £760,000, with each affected learner receiving an average of £9. The CMA emphasized that mandatory fees must be visible from the outset to ensure transparency. “At a time when people are watching every pound, dripped fees can tip the balance,” noted CMA chief executive Sarah Cardell. She further 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.”

In November, the watchdog initiated an investigation into eight businesses, including AA and BSM Driving School, uncovering practices that breached consumer rights. The schools have since updated their online processes to address the issue, though the penalties highlight the importance of upfront pricing clarity.