Automobile Association Developments ordered to refund £760,000 to learner drivers
Payments teams must process £3 booking-fee refunds for affected learner drivers
Change
Automobile Association Developments must refund more than 80,000 learner drivers a total of £760,000 and pay a £4.2m fine after failing to disclose a mandatory £3 booking fee during online bookings.
Why it matters
Online booking interfaces must display mandatory fees in the initial price so consumers see the total cost before they enter details, removing staged 'drip pricing' at checkout. Firms that do not correct booking flows now face required consumer redress and the risk of additional regulatory enforcement.
Implications
- — Payments teams at Automobile Association Developments — must immediately process and issue refunds to more than 80,000 affected learner drivers to comply with the CMA remedy order or the firm will remain in breach of the order and face further enforcement.
- — Product and e-commerce teams at Automobile Association Developments — must update online booking flows now to display total prices including mandatory booking fees up front or continued 'drip pricing' will expose the firm to further consumer-law penalties.
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