OFFICE OF FAIR
TRADING News Release (72/07) issued by The Government News Network
on 11 May 2007
On 9 February the
OFT issued a warning to all holiday and travel suppliers to
include all fixed non-optional costs in the basic advertised
prices of their holidays. The deadline for compliance expired yesterday.
The majority of airlines that the OFT contacted agreed to review
their pricing practices. Some have now agreed to change their
pricing to make it more transparent for consumers. The OFT is now
reviewing relevant advertising and websites to ensure that
compliance is complete.
Separately, the Association of British Travel Agents (ABTA) has
issued a reminder to its members that its Code of Conduct requires
them to include all fixed non-optional costs, such as taxes, in
the basic advertised prices of their holidays. ABTA has said it
will rigorously enforce this Code against travel companies who do
not comply. The OFT welcomes and supports this approach by ABTA.
A minority of airlines have failed to comply. The OFT intends to
bring enforcement proceedings against these airlines.
John Fingleton, OFT Chief Executive said:
'Markets do not work well if consumers cannot make
like-for-like comparison of prices. The OFT is committed to ensure
that consumers are not misled by advertised prices that bear
little relation to actual prices, and that businesses that do
provide reliable information to consumers are not disadvantaged.
We will enforce the law enthusiastically to ensure that consumer
choice and competition are not distorted, and that both consumers
and business have confidence in the market.'
NOTES
1. Part 8 of the Enterprise Act 2002 gives the OFT powers to
obtain court orders against traders that breach a range of
consumer legislation including in relation to misleading
advertising and misleading price indications.
2. In 2005 online air transport sales to households totalled £2.7
billion. Note: This data represents the sales of businesses with
10 or more employees. 'Air transport' is defined by the
2 digit SIC '62' and is not considered the optimum for
sectoral publication. Source: ONS analysis of the 2005 e-commerce
Survey of Business
3. The OFT issued a warning to holiday and travel suppliers on 9
February 2007 - http://www.oft.gov.uk/news/press/2007/21-07
4. More information about ABTA and its Code of Conduct is
available at http://www.abta.com.
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