HOLIDAY PROMOTERS AGREE NOT TO MISLEAD CONSUMERS

22 Sep 2003 11:15 AM

Following action by the OFT, the director and company secretary of Exmouth-based holiday voucher redemption company Travel Quest Group Limited have given undertakings not to publish misleading advertisements or breach consumer contracts for free flights and/or accommodation in the future.

Consumers were promised a holiday if they attended a timeshare presentation. At the presentation Travel Quest holiday vouchers were given to consumers which offered free flights and accommodation if they returned an application form and met certain other conditions. Consumers were presented with a choice of several holiday options. In all cases the holiday was to be provided within 18 months and was subject to the payment of a processing fee.

The OFT investigation followed a large number of complaints to trading standards officers around the country from consumers. The complaints were that consumers had either not been offered any holiday within 18 months (or not on the dates that they had selected) and that they had been unable to get a refund of their processing fees within a reasonable time.

Travel Quest has now gone into voluntary liquidation but its former director Lisa De-Ville Bradshaw and former company secretary Timothy John Roberts have given undertakings to the OFT not to engage in such conduct in the course of any business carried on by them. They have also undertaken not to publish advertisements that create the impression that free flights or accommodation will be provided when the consumer is unaware that he is required to pay a fee, and to give prominent notification of the existence of a fee at the time that the advertisement is published. John Vickers, OFT Chairman, said:

'A company promising a holiday within a specified time or on a selected date must provide just that. We will not hesitate to take action when advertisements make false promises.'

NOTES

1. The undertakings were requested under the Enterprise Act 2002 and the Control of Misleading Advertisements Regulations 1988 (as amended).

2. The Enterprise Act 2002 came into force on 20 June 2003, replacing the consumer provisions of the Fair Trading Act and the Stop Now Regulations.

3. The Enterprise Act improves consumer protection by giving enforcers strengthened powers to obtain court orders against traders that breach a range of consumer legislation; controlling activities such as misleading advertising, misleading price indications, lotteries, sale of goods and services, underage sales, estate agency, misleading health claims, trade descriptions, mock auctions, timeshare, unfair terms in consumer contracts, doorstep selling, distance selling, package travel and consumer credit.

4. The Control of Misleading Advertisements Regulations 1988 (as amended) came into force on 20 June 1988 implementing an EC Directive on misleading advertising. The regulations aim to protect the interests of consumers and businesses from misleading advertising - or advertisements that make prohibited comparisons.

'Advertisement' means any form of representation that is made in connection with a trade, business, craft or profession in order to promote the supply or transfer of goods or services, immovable property, rights or obligations.

The undertakings are set out below:

PART 8 OF THE ENTERPRISE ACT 2002
THE CONTROL OF MISLEADING ADVERTISEMENTS REGULATIONS
1988

UNDERTAKING

I, Lisa De-Ville Bradshaw, hereby undertake to the Office of Fair Trading pursuant to section 219 of the Enterprise Act 2002:

that I will not continue or repeat the conduct referred to in paragraphs 1 to 4 below carried out by Travel Quest Group Limited (registered office: Lloyds Bank Chambers, 22 The Strand, Exmouth, Devon, EX8 1AF); a body corporate with which I have a special relationship (within the meaning of section 222 (3) of the Enterprise Act 2002);

and that I will not in the course of any business carried on by me engage in conduct such as that referred to in paragraphs 1 to 4 below;

and that I will not consent to or connive at the carrying out of such conduct by another body corporate with which I have a special relationship (within the meaning of section 222 (3) of the Enterprise Act 2002).

1. Causing, procuring, or permitting, or being otherwise concerned, whether directly or indirectly, with, or consenting to or conniving at, the publication or dissemination, whether orally or in writing or in any other manner whatsoever, of misleading advertisements (within the meaning of The Control of Misleading Advertisements Regulations 1988). In particular (but without prejudice to the generality of the foregoing undertaking) I will refrain from being concerned with the publication of advertisements which create the misleading impression that:

a) free flights and/or accommodation will be provided when this is not the case;

b) free flights and/or accommodation will be provided when the consumer is not aware that he is required to pay a processing fee or a similar fee or disbursement. For the avoidance of doubt, the consumer must be made aware of the requirement to pay such a fee or disbursement at the time of the publication of the oral or written advertisement, and by means of a representation that has equal prominence with the advertisement;

c) the consumer is guaranteed to receive flights and/or accommodation within a fixed period or on one of a selection of dates chosen by the consumer when this is not the case;

d) a holiday will be provided within 18 months of the date of the consumer's application (or other fixed period) when this is not the case; and

e) the consumer may choose a selection of dates when the holiday will take place, one of which will be honoured, when this is not the case;

or an advertisement in similar terms or likely to convey a similar impression.

2. Committing breaches of contracts with consumers by failing to provide the consumer with a holiday:

a) within the agreed fixed period; or

b) on one of a selection of dates chosen by the consumer, where it was agreed that one of the selected dates would be matched; or

c) at all.

3. Committing breaches of contracts by failing to refund monies to which consumers are entitled within a reasonable time, or at all.

4. Inducing consumers to enter into contracts by making false representations, whether fraudulently or negligently.

IF YOU SIGN THIS DOCUMENT, YOU AGREE TO OBEY ITS REQUIREMENTS. ANY BREACH OF THE ABOVE UNDERTAKING WILL RENDER YOU LIABLE TO COURT ACTION.

Signed Date
Lisa De-Ville Bradshaw

Witness Date

Witness (name)

address

PUBLIC enquiries: 0845 7224499 enquiries@oft.gov.uk OFT reports and consumer information leaflets are available free from: OFT, PO Box 366, Hayes UB3 1XB 0870 6060321 oft@eclogistics.co.uk