UK's Competition and Markets Authority fines Automobile Association Developments £4.2m and orders £760,000 refunds to learners
→Customer-relations teams must issue refunds to 80,000+ learner drivers immediately
Change
UK's Competition and Markets Authority ordered Automobile Association Developments to pay a £4.2m fine and refund £760,000 to more than 80,000 learner drivers after the firm failed to display a mandatory £3 booking fee until checkout on online bookings between April and December last year.
Why it matters
Online sellers must present the total price, including any mandatory booking fees, at the start of the booking journey. Firms that do not comply face regulator-enforced refunds and penalty fines.
Implications
- — Customer-relations teams at UK online booking platforms that levy mandatory booking fees — must identify affected bookings and issue refunds immediately — or face Competition and Markets Authority-directed restitution orders and additional fines.
- — Finance and treasury teams at UK consumer-facing service providers that charge mandatory booking fees — must reserve sufficient liquidity now to cover ordered refunds and any fines — or face enforcement collection and potential cashflow disruption.
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Source
View on BBC