New Zealand watchdog after airlines
Air New Zealand and Australian rival Qantas are to be charged with hundreds of cases of misleading advertising by a New Zealand consumer watchdog, potentially leading to fines of millions of dollars.
The Commerce Commission, which administers consumer protection laws, said on Friday it would charge Air New Zealand with 300 alleged breaches and Qantas with 399, stretching back to 2001.
The charges come after Air NZ was found guilty in a district court of breaching consumer laws in 14 of 20 sample charges brought by the commission after consumers complained that extra costs were being added to the price of advertised fares.
The Travel Agents Association says the conviction of Air New Zealand represents a victory for their industry as well as the consumer.
A preliminary court hearing for Air New Zealand is set for the first week of December, while Qantas is expected to face the charges on its NZ advertising in May 2006.
“We’re looking through the judgement carefully, so we don’t have any further comment at this point,” an Air New Zealand spokeswoman said.
Qantas had no immediate statement to make.
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