AA and BSM ordered to refund learner drivers for hidden fees

AA and BSM Ordered to Refund Learner Drivers for Hidden Fees

Automobile Association Developments has been fined £4.2m and required to refund thousands of learner drivers after failing to reveal the full cost of lessons upfront during online bookings. The Competition and Markets Authority (CMA) confirmed the decision, which impacts more than 80,000 customers of the AA and BSM driving schools. The total refunds amount to £760,000, with an average payout of around £9 per individual.

The driving schools expressed disappointment over the investigation’s outcome but highlighted their full cooperation with the regulator. They noted: “While the £3 booking fee was clear to customers before purchase, it should have been visible from the start of the online booking process. We updated our website to make the fee more prominent and are now processing refunds for all affected users.”

“If a fee is mandatory, the law requires it to be included in the price from the very beginning, not added at checkout,” said CMA chief executive Sarah Cardell. “At a time when people are watching every pound, hidden fees can tip the balance between informed choices and unexpected costs.”

The CMA’s probe revealed that during online lesson bookings between April and December last year, customers were first shown prices excluding a compulsory booking fee. This fee became apparent only at the final checkout stage, after users had selected lessons, chosen times, and provided personal details.

Such practices are classified as “drip-pricing,” a tactic deemed illegal for misleading consumers. The watchdog’s investigation, launched in November, targeted eight businesses, including AA and BSM. The CMA stressed that fees must be transparent from the outset to prevent customers from being caught off guard by additional charges.