AA and BSM Driving Schools Ordered to Refund Thousands of Learner Drivers for Drip Pricing Violation
Thousands of learner drivers are set to receive refunds following an investigation that found the AA and BSM driving schools guilty of drip pricing. The Competitions and Markets Authority discovered that over 80,000 learners were not shown the total price upfront when booking lessons online, as required by law. Instead, a mandatory fee was added later in the booking process. The AA Driving School and BSM Driving School, both owned by the AA, have been ordered to refund affected customers over £760,000 and pay a fine of £4.2 million for violating consumer law.
This ruling marks the first time the CMA has imposed a financial penalty for a breach of consumer law using its new enforcement powers. The refunds for affected customers will vary depending on the number of lesson packages purchased, with an average payout of around £9. Customers do not need to take any action to receive a refund. The AA Driving School or BSM Driving School will contact each customer to inform them that their money will be automatically refunded to the card used for payment. If this is not possible, a cheque will be sent to the customer.
In conclusion, the AA and BSM driving schools have been found guilty of drip pricing, leading to refunds for thousands of learner drivers. The CMA's investigation resulted in a significant financial penalty for the AA and highlighted the importance of transparency in pricing for consumers. Affected customers will receive automatic refunds without needing to take any action, ensuring that they are fairly compensated for the hidden fees they were charged.