Airlines targeted over misleading fare ads
Airlines are to be banned from advertising cheap fares and then slugging consumers with additional fees and charges buried in the fine print, the federal government says.
Labor today moved to prohibit any component pricing which leads to consumers making purchases without knowing the full price of a product.
Consumer Affairs Minister Chris Bowen says it is “fundamental” that the total price be provided “at least as prominently” as any component price.
“This government believes the total the consumer will pay must be prominently stated, not just lost somewhere in the footnote … or buried in the fine print,” the consumer affairs minister told parliament.
The Trade Practices Act presently states that when a business advertises the price of part of a product it must also state the “cash price”.
But the courts have ruled that doesn’t require the total cost to be disclosed.
Mr Bowen says legislation introduced to parliament today will make it clear businesses must “state the total price as a single figure” when that price is quantifiable.
The advertising of cheap airfares was the best known form of misleading component pricing, the minister said.
“It is not appropriate that additional compulsory fees and charges are disclosed in fine print disclaimers, particularly when those additional compulsory charges may be significantly larger than the component price that is highlighted.”
The Australian Competition and Consumer Commission received 430 complaints over confusing component pricing last year and Mr Bowen says many other consumers were likely misled, but did not complain to a regulator.
The changes will apply to print, television and radio advertisements.
AAP
John Alwyn-Jones
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