AA and BSM driving schools under investigation over £3 booking fee

The UK’s competition watchdog has launched an investigation into the AA Driving School and BSM Driving School over how they present mandatory fees to customers. 

Specifically, the Competition and Markets Authority (CMA) is looking into whether or not the £3 booking fee that both driving schools charge each time a customer books driving lessons is included in the total price that people see at the beginning of the purchase process. 

A spokesperson for the AA – which owns both driving schools – told Auto Express: “We are comfortable that the £3 booking fee for lessons is already transparent and in line with the CMA’s rules and are more than happy to additionally notify customers earlier in the journey as well, which we have already done.”

The competition regulator is now in the process of gathering evidence to determine if the driving schools have infringed on consumer protection laws and says it will be engaging with the AA.

The CMA is investigating eight firms suspected of different online pricing tactics, including the aforementioned driving schools, plus ticket resellers StubHub and Viagogo, and homeware retailers such as Wayfair and Appliances Direct.

The investigations have been launched after the CMA began conducting a review of more than 400 businesses in April, assessing their compliance with rules on price transparency. 

Based on the results of this review, plus additional monitoring, the CMA identified various concerns, including the practice of drip pricing. This is when a company advertises a product or service at an initial price, but then adds mandatory charges at a later stage in the checkout process. 

Certain companies are also suspected of using misleading countdown timers which, like drip pricing, are banned under the new Digital Markets, Competition and Consumers Act (DMCCA) 2024. 

Based on the results of its “compliance sweeps”, the CMA is also sending advisory letters to 100 businesses, outlining what it calls “concerns about their use of additional fees and online sales tactics”. 

Sarah Cardell, chief executive of the CMA, said: “At a time when household budgets are under constant pressure and we’re all hunting for the best deal possible, it’s crucial that people are able to shop online with confidence, knowing that the price they see is the price they’ll pay, and any sales are genuine.”

She added, “This is just the start of our work. Any businesses who break consumer law should be in no doubt we will stamp out illegal conduct and protect the interests of consumers and fair-dealing businesses.”

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