AA and BSM Driving Schools Ordered to Issue Refunds for Opaque Pricing
Following a probe by the competition watchdog, the operators of AA and BSM driving schools are required to issue refunds to thousands of learners after failing to display the full cost of lessons during the online booking process. The Competition and Markets Authority (CMA) has also levied a £4.2m penalty against Automobile Association Developments for violating consumer protection regulations.
Over 80,000 customers of the AA and BSM driving schools will receive a total of £760,000 in refunds, with an average payout of approximately £9 per individual. A representative from the driving schools stated their disappointment with the investigation’s findings but confirmed full cooperation during the process. They remarked: “While the £3 booking fee was communicated to customers before purchase, it should have been clearly visible from the outset of the online booking experience. We promptly updated our website to highlight this fee and are now processing refunds for affected users.”
Investigation Unveils Drip-Feeding of Costs
The CMA’s inquiry revealed that between April and December of the previous year, customers were initially presented with lesson prices excluding a mandatory booking fee. This fee became apparent only at the checkout stage, after users had selected lesson types, set time slots, and input their personal information. This tactic, referred to as drip-pricing, is considered unlawful as it can mislead consumers into agreeing to a service based on a lower initial price, only to face additional charges later.
“When a fee is compulsory, the law mandates that it must be visible at the start of the transaction—not added unexpectedly at the final stage,” stated Sarah Cardell, chief executive of the CMA. She further noted: “During periods of heightened cost awareness, such hidden fees can significantly impact consumer decisions.”
In November, the watchdog initiated an investigation into eight businesses, including AA and BSM Driving Schools, uncovering practices that misled customers through incomplete pricing information during online bookings.
