AA and BSM ordered to refund learner drivers for hidden fees
AA and BSM Drive Schools Face Refund Orders Over Unrevealed Charges
The Competition and Markets Authority (CMA) has ruled that AA and BSM driving schools must return funds to thousands of learner drivers who were not fully informed of all costs upfront during online bookings. The watchdog’s investigation uncovered that mandatory fees were concealed until the final checkout stage, misleading customers about the total price.
Automobile Association Developments has been fined £4.2 million for breaching consumer law, while over 80,000 customers of both schools will share £760,000 in refunds. This means each affected individual will receive roughly £9 on average. A spokesperson for the driving schools admitted disappointment with the outcome but highlighted their complete cooperation during the process.
“Although the £3 booking fee was communicated before purchase, it should have been clearly visible at the start of the online booking process,” the representative said. “We promptly updated our website to highlight this fee and are now refunding all eligible customers.”
The CMA’s findings revealed that between April and December last year, users were initially shown lesson prices without the booking fee. This fee was only disclosed at checkout, after customers had selected lessons, set times, and provided personal details. This practice, known as drip-pricing, is considered illegal as it can lead people to choose a service based on a lower initial cost, only to face additional charges later.
Sarah Cardell, chief executive of the CMA, emphasized the importance of transparency. “Mandatory fees must be included in the total price from the beginning,” she stated. “Consumers should never be surprised by extra charges at the last moment, especially when they’re carefully monitoring their expenses.”
The investigation into eight businesses, including AA and BSM Driving School, was launched by the watchdog in November. This case underscores the CMA’s focus on ensuring fair pricing practices for consumers in the driving education sector.
