Wendy Wu Tours Pty Limited has given the Australian Competition and Consumer Commission a court enforceable undertaking after a second breach of the 'all-inclusive pricing' provisions of the Trade Practices Act 1974.
Under Section 53C of the Act, which came into operation in May 2009, corporations must prominently specify a single price for their goods or services, including all taxes, duties, fees and other mandatory charges that are quantifiable at the time of making the representation.
In about August 2009 Wendy Wu Tours, a group tour wholesaler specialising in tours to Asia, published advertisements on its website and in major daily newspapers for various tours. The advertisements stated a price for each tour and added Fuel Levy & tipping additional. Currently $540.pp. Wendy Wu at this time provided an administrative undertaking that its future advertising would comply with section 53C.
In about October 2009 Wendy Wu published an advertisement in The Sydney Morning Herald Traveller which stated: Fully inclusive group tours ranging from 10 – 29 days - From less than $156* per person per day. In the fine print appeared the words: *Daily rate applies to low season departures of the 28 day China Highlight tour.
The ACCC considered that both the August and October 2009 advertisements were a breach of section 53C, as they failed to state a single price that included all mandatory charges. To resolve this, Wendy Wu Tours offered the ACCC a court enforceable undertaking that its future advertising would comply with the Act. Wendy Wu Tours has also undertaken to establish a trade practices law compliance program.
The ACCC has been conducting a significant education program across various industries, including the travel industry, to explain the single price requirements and, where appropriate, give businesses the opportunity to change advertising.
"While these education initiatives have helped businesses understand their obligations, the ACCC is also signalling that it will take enforcement action to ensure consumers get clear, upfront information about the price they pay for goods and services," acting ACCC chairman Peter Kell said. "Businesses that do not comply with the requirement to specify prominently the single price for goods or services may find themselves in court for breaches of the Act.
"In future, the ACCC may take court action and seek civil penalties or issue an infringement notice over such practices.
"The new Australian Consumer Law gives the ACCC the ability to issue an infringement notice in cases of unconscionable conduct, some false or misleading conduct, pyramid selling and various product safety provisions. Infringement notice penalties for false or misleading conduct are $6,600 for corporations and $1,320 for individuals."