Learner drivers to get booking fees refunded over crackdown on drip-pricing
Two AA-owned driving schools have been ordered by the UK competition watchdog to refund more than 80,000 customers and have been fined ÂŁ4.2 million over drip-pricing.
The Competition and Markets Authority (CMA) said the AA Driving School and BSM Driving School did not include a mandatory ÂŁ3 booking fee in upfront prices.
This is an illegal practice known as drip-pricing.
The amount repaid to individuals will vary depending on how many lesson packages they bought, with the average being about ÂŁ9.
This will total more than ÂŁ760,000.
The refunds and fine combined will almost be ÂŁ5 million.
This is the first financial penalty the CMA has imposed for breach of consumer law since it was handed new enforcement powers.