They stated: “Although the £3 booking fee was made clear to customers prior to their purchase, we acknowledge it should have also been displayed at the start of the online booking journey.
“Having listened to the regulator, we made speedy adjustments to our web site to make the £3 reserving charge extra outstanding. We are actually refunding all related prospects.”
Customers do not need to do anything to get their refund – the AA Driving School or BSM Driving School will write to individuals.
The CMA’s investigation found that people booking lessons online between April and December last year were initially shown prices that did not include a mandatory booking fee.
It was only shown at the checkout stage, after new customers had gone through selecting lessons, choosing times and entering their personal details.
The practice is known as “drip-pricing” which is illegal and can mislead customers into choosing a service or product for a low price, only for it to be increased later.
CMA chief executive Sarah Cardell, said: “If a charge is obligatory, the regulation is obvious: it have to be included within the worth from the very begin – not added at checkout – so customers all the time know what they want to pay.”
She added: “At a time when individuals are watching each pound, dripped fees can tip the steadiness.”
According to government research from 2023, external, virtually half of on-line companies it sampled used hidden or dripped fees.
Business Secretary Peter Kyle said consumers “ought to by no means be caught out by unclear pricing”.
He stated: “I welcome the CMA’s powerful motion at this time to implement the regulation and make sure that companies play honest.”
In November, the CMA launched an investigation into eight businesses including AA Driving School and BSM Driving School, under the new Digital Markets, Competition and Consumers Act 2024.
This gave the watchdog new powers to resolve if client legal guidelines had been damaged quite than having to undergo the courts. The CMA’s motion towards the AA is the the primary penalty it has imposed beneath the brand new enforcement powers.
