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The company behind the AA and BSM driving schools has been ordered to refund over 80,000 learners after an investigation revealed that it failed to clearly disclose the full cost of driving lessons during the online booking process. The Competition and Markets Authority (CMA) found that a mandatory booking fee was not included in the initial price shown to customers, a practice known as “drip pricing,” which is illegal as it misleads consumers by hiding fees until a later stage.
Affected learners will collectively receive £760,000 in refunds, averaging about £9 each, while the Automobile Association Developments has also been fined £4.2 million for breaching consumer protection laws. The CMA’s inquiry discovered that between April and December of the previous year, customers could only see the £3 booking fee after they had selected lessons, chosen times, and entered personal information at checkout, rather than at the beginning of the booking journey.
A representative for AA and BSM driving schools expressed disappointment at the CMA’s findings but confirmed full cooperation throughout the inquiry. They recognized that the booking fee should have been presented more prominently from the start and immediately updated their website to rectify this. Refunds are now being issued automatically, with no action required from customers.
The CMA’s chief executive, Sarah Cardell, emphasized the importance of transparency, stating, “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.” Additional commentary from industry experts and consumer advocates highlights the significance of this enforcement. Matt Crole-Rees from Confused.com pointed out the broader issue of pricing transparency in driving lessons, while business leaders and consumer groups called for continued strict action to prevent deceptive pricing tactics across sectors
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