The Australian Competition and Consumer Commission obtained interim orders from the Federal Court on Wednesday requiring Abel Rent-A-Car Pty Limited, a Brisbane-based car rental company, to change its advertisements.
The ACCC brought proceedings alleging that Abel Rent-A-Car's advertising, which appears on prominent billboards in and around Brisbane, as well as in brochures and on the Internet, was likely to mislead consumers, in contravention of the Trade Practices Act 1974.
Abel Rent-a-Car's advertisements contain the slogans "Abel $29*", and "Rent new cars and trucks $29*". The ACCC alleges this is misleading, as Abel Rent-A-Car does not have trucks for rental for $29 a day, does not offer the $29 deal on Fridays, Saturdays or Sundays, and imposes an additional charge of at least 30 cents for each kilometre travelled over 25 kilometres per day.
Some of Abel Rent-A-Car's advertisements also refer to "free insurance" and "free delivery". The ACCC alleges this is also misleading, as insurance is subject to a substantial excess, for which either a credit card bond or additional payments have to be provided, and free delivery is not always available.
Justice Drummond ordered Abel Rent-A-Car to disclose on its billboards, vehicle signs and Internet site that a mileage charge applies for its $29 rental, the days of the week for which the offer is available, and to remove all references to free delivery, or to trucks being available at that price. In addition, Abel Rent-A-Car was ordered to add the words "excess applies" to its references to free insurance on its Internet site.
Abel Rent-A-Car was also ordered to cease distribution of any brochures containing the slogan "Abel $29*" which did not also state that mileage charges applied, or the days of the week for which the offer was available, or which referred to free delivery.
The orders remain in place until the final hearing of the ACCC's case against Abel Rent-A-Car. At that hearing, the ACCC is seeking permanent injunctions against Abel Rent-A-Car, as well as declarations, and orders for corrective advertising.
The ACCC brought proceedings alleging that Abel Rent-A-Car's advertising, which appears on prominent billboards in and around Brisbane, as well as in brochures and on the Internet, was likely to mislead consumers, in contravention of the Trade Practices Act 1974.
Abel Rent-a-Car's advertisements contain the slogans "Abel $29*", and "Rent new cars and trucks $29*". The ACCC alleges this is misleading, as Abel Rent-A-Car does not have trucks for rental for $29 a day, does not offer the $29 deal on Fridays, Saturdays or Sundays, and imposes an additional charge of at least 30 cents for each kilometre travelled over 25 kilometres per day.
Some of Abel Rent-A-Car's advertisements also refer to "free insurance" and "free delivery". The ACCC alleges this is also misleading, as insurance is subject to a substantial excess, for which either a credit card bond or additional payments have to be provided, and free delivery is not always available.
Justice Drummond ordered Abel Rent-A-Car to disclose on its billboards, vehicle signs and Internet site that a mileage charge applies for its $29 rental, the days of the week for which the offer is available, and to remove all references to free delivery, or to trucks being available at that price. In addition, Abel Rent-A-Car was ordered to add the words "excess applies" to its references to free insurance on its Internet site.
Abel Rent-A-Car was also ordered to cease distribution of any brochures containing the slogan "Abel $29*" which did not also state that mileage charges applied, or the days of the week for which the offer was available, or which referred to free delivery.
The orders remain in place until the final hearing of the ACCC's case against Abel Rent-A-Car. At that hearing, the ACCC is seeking permanent injunctions against Abel Rent-A-Car, as well as declarations, and orders for corrective advertising.