Misleading travel offers around the world will be scrutinised this week. The Australian Competition and Consumer Commission and other consumer protection authorities from Australia and some 30 other countries begin searching thousands of websites today to discover misleading claims.
The International Consumer Protection and Enforcement Network Sweep is targeting websites that attempt to induce consumers through bold attractive offers that are not so attractive if the full picture is seen.
"Closer international cooperation between enforcement agencies is critical", ICPEN President, and Acting ACCC Chairman, Mr Sitesh Bhojani, said today. "Scammers and rip-off merchants seek to take advantage of international boundaries to avoid detection and escape action by local agencies".
ICPEN* is a network of consumer protection authorities of 31 countries. Its main objective is to take action to prevent and redress deceptive marketing practices with an international component. The network fosters cooperative efforts by member authorities to tackle consumer problems connected with cross-border transactions in both goods and services. Exchange of information between authorities also plays a key role in effective investigations and court action where necessary.
Due to the growth of the Internet, cross-border consumer transactions are increasing. This brings challenges for law enforcement. ICPEN is focused on enforcement action. This is the third Sweep in three years to concentrate the enforcement efforts of all member countries on a single topic.
"Consumers can now use the Internet to assess and book complex and often expensive holidays", Mr Bhojani said. "Families and young people are taking advantage of discounted airfares and packaged holidays to travel internationally.
"Where people used to deal through travel agents, they may now book and pay for a package deal entirely through a website. ICPEN is concerned that global consumers should get what they pay for in travel-related goods or services.
"Consumers should have an accurate impression as to costs. Electronically promoting products does not somehow absolve traders of their responsibilities to make accurate representations, or provide refunds as mandated by the Trade Practices Act 1974 and other similar legislation overseas".
The ACCC is the current President of the ICPEN, and the International Sweep Coordinator. It is also bringing joint investigations with other authorities wherever possible.
"ICPEN is the leading consumer protection forum for stopping illegal conduct that crosses borders and preventing loss by informing businesses of their responsibilities and helping consumers avoid scams", Mr Bhojani said.
The ACCC's Canberra office will house the main Sweep Room, with other regional Sweep centres in ACCC offices in Melbourne, Sydney, Adelaide, Perth and Brisbane.
ACCC action in Australia
The ACCC is currently alleging breaches of the Trade Practices Act by Voyages Hotels and Resorts in their promotion of tours to Aboriginal land near Uluru (For more information, see ACCC media release MR 176/02).
The ACCC also recently accepted court enforceable undertakings from QANTAS and Virgin Blue to assist in establishing new industry-wide standards for the advertising of airfares (see MR 149/02). These undertakings, offered under section 87B of the Act, provide that advertised airfares will include all taxes, levies and charges applicable to airline tickets.
This comes within a year of the ACCC announcing its crackdown on fine print qualifiers that alter the main message. This was foreshadowed by broad industry education through the guide Advertising and Selling, which has also been recently updated to include Internet examples.
"Do not expect the ACCC's tough approach on this subject to change", warned Mr Bhojani. "Potentially misleading messages containing fine print will always attract the closest scrutiny from the ACCC".
ICPEN agencies provide the following tips to travelling consumers:
- if it sounds too good to be true, it probably is;
- satisfy yourself that you are getting a good deal by thorough comparison;
- check that the trader discloses fulsome information about themselves, their location, price and inclusions, and terms and conditions;
- know the trader’s policies on refunds, and obtain travel insurance if required; and
- understand the meaning of seals or trustmarks displayed on sites – investigate the requirements for subscribing, and verify the trader's membership.
Consumers who believe they have been a victim of deceptive practices on the Internet can call and report the matter to the ACCC Infocentre on 1300 302 502, or register their complaint at www.econsumer.gov , the ICPEN's global online complaint mechanism.
The President of the International Consumer Protection and Enforcement Network, ACCC Acting Chairman, Mr Sitesh Bhojani, will be available in the Canberra Sweep Room, Basement, 470 Northbourne Ave, Dickson ACT, between 11 a.m. and 12 noon today to answer questions.
Other organisations present in the Canberra Sweep Room include the Consumer Affairs Division of the Treasury and the ACT Office of Fair Trading.
Also contactable for comment in Canberra are:
- Mr David Tennant, Chair, Consumers' Federation of Australia (02) 6257 1788
- Mr Tim Gough, Solicitor, Consumer Law Centre of the ACT (02) 6257 1788
Other Australian venues for the sweep include:
Melbourne, Victoria – 9a.m. – 10 a.m. Contact: Mr Tom Fahy (03) 9290 1860
Level 35, 360 Elizabeth St Melbourne. Mr Ed Willett, ACCC Commissioner, will be available to the media, along with the Mr John Lenders, Minister for Consumer Affairs.
Also available for comment in Melbourne:
Mr Chris Field, Executive Director, Consumer Law Centre Victoria (03) 9629 6901
0419 598 836
Sydney, NSW – 11 a.m. – noon. Contact: Ms Rose Webb (02) 9230 9133
Level 7, Angel Place, 123 Pitt St Sydney. Ms Jennifer McNeill, ACCC Commissioner with responsibilities in E-commerce, will be available for comment.
Also available for comment in Sydney:
Mr Charles Britton, Senior Policy Officer, IT & Telecommunications (02) 9577 3290
Australian Consumers' Association 0413 719 512
Perth, Western Australia – 11 a.m. – noon. Contact: Mr Steve Bray (08) 9325 3622
Level 3, 233 Adelaide Terrace Perth. Mr Sam DiScerni, ACCC Regional Director, will be available for comment.
Brisbane, Queensland – 11 a.m. – noon. Contact: Ms Melinda McDonald (07) 3835 4666
Level 10, 500 Queen St Brisbane. Mr Alan Ducret, ACCC Regional Director, and Mr Joe Camilleri, Manager Investigations, Queensland Office of Fair Trading (07) 3119 0067 will be available for comment.
Adelaide, South Australia – 11 a.m. – noon. Contact: Mr Bob Weymouth (08) 8213 3453
Level 1, 13 Grenfell St Adelaide. Mr Bob Weymouth, ACCC Regional Director, and Mr David Schomburgk, Manager, Office of Consumer and Business Affairs (08) 8204 9755 will be available for comment.
Townsville, Queensland – 11 a.m. – noon. Contact: Mr Tony Hilton
Level 6, Commonwealth Bank Building, Flinders Mall, Townsville. Mr Tony Hilton, ACCC Director, Mr David Farrar, Director, Office of Fair Trading (07) 4753 2200.
Darwin, Northern Territory – 11 a.m.-noon. Contact: Mr Derek Farrell (08) 8946 9610
Level 8, National Mutual Centre, 9-11 Cavenagh St Darwin. Mr Derek Farrell, Regional Director, and Mr Brian Kelleher, Assistant Manager, NT Department of Consumer and Business Affairs (08) 8999 1999 will be available for comment.
Hobart, TAS – 11 a.m.- noon. Contact: Mr Peter Clemes (03) 6215 9300
3rd Floor 86 Collins Street, Hobart. Mr Peter Clemes, ACCC Regional Director will be available for comment.