OFFICE OF FAIR
TRADING News Release (118/07) issued by The Government News Network
on 9 August 2007
Following the
OFT's warning to the holiday and travel industry in February,
the OFT has successfully taken action against 13 airlines that did
not include all fixed, non-optional costs, such as taxes, in
prices on their websites.
As a result eleven airlines have already changed their
advertisements and websites (both their homepages and booking
processes) to include fixed, non-optional costs in their
advertised prices and the OFT expects continued compliance from
these airlines.
Two other airlines, Aer Lingus and Ryanair, have changed their
homepages, but have said technical issues prevent them from
changing their entire website booking processes immediately.
However, the OFT is satisfied that these airlines will be making
these changes shortly, and will continue to monitor the situation
to ensure the agreed changes are made.
In the interim period, Ryanair has agreed to place a clear
statement on its website to inform consumers how much the taxes
and charges will add to the final price.
In a co-ordinated move, ABTA - The Travel Association has taken
action against members that have failed to comply with the ABTA
Code of Conduct in relation to the same type of misleading price
indications. On 13 June, the ABTA Code of Conduct Committee handed
out fines and reprimands to several ABTA members for failing to
include fixed, non-optional costs in prices. The OFT strongly
welcomes and supports ABTA's action.
The OFT will be working with international partners, including
the National Consumer Agency (NCA) in Ireland, to ensure
compliance across the holiday and travel industry, and to ensure
that the undertakings provided by the airlines are complied with.
Sean Williams, OFT Executive Director said:
'The OFT is committed to ensure that consumers are not
mislead by advertised prices that bear little relation to actual
prices. Misleading pricing not only undermines consumer confidence
but also distorts competition and we will enforce the law
enthusiastically where we find that consumers have been misled.'
NOTES
1. As of 31 July, easyJet, bmibaby, Flybe, Thomsonfly,
flythomascook (a trading name of Thomas Cook Tour Operations
Limited), Monarch, Jet2, Globespan, Wizz Air, Sky Europe and
German Wings have changed their websites to include fixed,
non-optional costs in all prices. Ryanair and Aer Lingus have
changed their homepages to include fixed, non-optional costs with
immediate effect. Technical issues have prevented both airlines
from changing their booking processes by 31 July, but both have
satisfied the OFT that they will do so as soon as it is possible.
2. 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.
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.
The OFT made a further announcement about this matter on 11 May -
http://www.oft.gov.uk/news/press/2007/72-07.
4. More information about ABTA and its Code of Conduct is
available at http://www.abta.com.
5. The National Consumer Agency (NCA) is a statutory body
established by the Irish Government in May 2007. It aims to defend
consumer interests and to embed a robust consumer culture in
Ireland. The NCA is examining aspects of the airline industry
within Ireland, including possible unfair terms (for example
retention of taxes and other charges), price transparency and
possible misleading advertising. It expects to have completed the
research phase of this exercise by the end of September. More
information about the NCA is available at http://www.nca.ie.
http://www.oft.gov.uk
PUBLIC enquiries: 0845 7224499
enquiries@oft.gov.uk
OFT
reports and consumer information leaflets are available free
from:
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