The Australian Competition and Consumer Commission has written to the National Australia Bank querying changes to its National Gold Rewards Program, ACCC Chairman, Professor Allan Fels, said today.
"In particular, the ACCC has queried changes to the redemption rate for National Gold Rewards members who are also Qantas Frequent Flyer members. This follows a request from Treasurer, Mr Peter Costello.
"The ACCC understands NAB has previously represented to consumers that if they earned National Rewards points then the redemption rate was one National Gold Rewards point equalled one Qantas Frequent Flyer point. However the NAB has foreshadowed a rate change so that from 15 June 2002, 1.5 National Gold Rewards will need to be redeemed for one Qantas Frequent Flyer point.
"The ACCC believes this will devalue points accrued before 15 June 2002 by a third.
"The ACCC indicated that it is concerned that by changing the redemption rate NAB may have misled consumers and may have misrepresented the value, characteristics, uses or benefits of the consumer's National Rewards points.
"The ACCC has asked a number of questions of NAB concerning the size of the program, rate changes, timing and basis for the change. It has ask ed the NAB to respond by 5 pm 24 May 2002".
DOORSTOP: Professor Fels will be available to talk with the media at 12:15 pm today (21 May) at the ACCC's Sydney offices, Level 7, 123 Pitt Street, Sydney.