AA and BSM ordered to refund learner drivers for hidden fees

The AA and BSM driving schools have been ordered to repay millions to learners after a regulator found they hid mandatory fees during online booking. | Contesto: cronaca

Punti chiave

• AA and BSM ordered to refund learner drivers for hidden fees

Contesto

The AA and British School of Motoring (BSM), two of the UK's largest driving school networks, have been ordered to refund an estimated £1.7 million to thousands of learner drivers. The Competition and Markets Authority (CMA) issued the enforcement order after a year-long investigation concluded the firms had systematically failed to disclose mandatory additional fees during their online booking process. The ruling, announced today, also includes a £150,000 fine for the schools' parent company, Acromas Holdings, for breaching consumer protection law. The CMA's investigation found that customers searching for and booking driving lessons on the AA and BSM websites were presented with an initial price that excluded a compulsory ‘booking fee’ or ‘admin fee’, typically ranging from £5 to £10. This key charge was only revealed at the very end of the checkout process, a practice known as drip-pricing. For many learners, particularly those on tight budgets, this meant the final cost was significantly higher than the price that initially attracted them, distorting their ability to compare services fairly. Sarah Cardell, Chief Executive of the CMA, stated the action sends a clear message to businesses across the economy. "Hiding mandatory fees until the last moment is not only unfair, it is illegal," she said. "Driving lessons are a major expense for young people and their families. Presenting a partial price upfront traps consumers, making it difficult to shop around. This enforcement action puts all companies on notice that we will use our powers to tackle these misleading practices." The regulator estimates over 150,000 learners who booked lessons online between 2018 and 2023 may be eligible for a refund. The practice of drip-pricing has come under intense scrutiny from regulators globally, particularly in the travel and entertainment sectors. However, its application to essential services like driver education highlights its pervasiveness. The AA and BSM case is seen as a landmark because it involves a foundational life skill, where transparent pricing is crucial for accessibility. Consumer advocacy groups have long argued that hidden fees disproportionately affect...

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Categoria: cronaca