AA and BSM ordered to refund learner drivers for hidden fees

AA and BSM ordered to refund learner drivers for hidden fees

The Competition and Markets Authority (CMA) has ruled that Automobile Association Developments must refund thousands of learners who booked driving lessons online, as the total cost was not fully disclosed upfront. The driving schools were also fined £4.2 million for violating consumer laws.

Over 80,000 customers of AA Driving School and BSM will receive £760,000 in total, with each individual payout averaging around £9. A representative from the schools stated they were “disappointed with the outcome of the investigation” but “cooperated fully” during the process. They explained: “While the £3 booking fee was visible before the purchase, we admit it should have been highlighted from the beginning of the online booking process. We promptly updated our website to make this fee more noticeable and are now refunding all affected customers.”

“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,” said CMA chief executive Sarah Cardell. She added: “At a time when people are watching every pound, dripped fees can tip the balance.”

The CMA’s inquiry revealed that between April and December last year, customers were initially shown prices excluding a mandatory booking fee. This fee was only displayed at the final checkout stage, after users had selected lessons, set times, and provided personal details. This practice, known as “drip-pricing,” is considered illegal and can deceive customers into agreeing to a service at a lower price, only for additional costs to appear later.

The watchdog initiated the investigation in November, targeting eight businesses, including AA and BSM Driving Schools. The findings highlight how failing to present all charges upfront can lead to unfair advantages for businesses while misleading consumers about their total expenses.