Undertaking date

Undertaking type

s.87B undertaking

Reference number

D15/153329

Section

Sections 18, 29(1)(i) and 48 of the ACL

Company or individual details

  • Vacaciones eDreams, SL (sociedad unipersonal con CIF B-61965778)

Undertaking

The Australian Competition and Consumer Commission (ACCC) has accepted a court enforceable undertaking from Vacaciones eDreams, SL (eDreams) in relation to claims made on the eDreams Website, Mobile Site and Application (collectively referred to as the eDreams platforms). eDreams carries on an on-line travel and accommodation booking service business in Australia on the eDreams platforms.

The ACCC alleges that from at least January 2014 until about December 2014, eDreams on its Website made part price representations by displaying a headline price which did not include the applicable Service Fee or Payment Fee. Further, on the eDreams Mobile Site and App, eDreams did not adequately disclose the existence or amount of the Service Fee and Payment Fee.

eDreams acknowledges that the ACCC considers that in relation to the Website eDreams contravened section 48 of the ACL, and in relation to the Mobile Site and the Application contravened sections 18 and29(1)(i) of the ACL.

Consumers who book air travel on any of the eDreams platforms are required to pay two mandatory fees – a Service Fee and a Payment Fee. The Service Fee varies between $8 and $30 AUD and applies per person and per route. The Payment Fee varies depending on the payment method chosen by the consumer and applies per person and per route.

To address the ACCC’s concerns, eDreams, provided the ACCC with a section 87B undertaking that it will, for a period of three years (unless otherwise stated):

  • ensure that prices displayed on the eDreams platforms can be booked by paying with at least one fee free payment method in Australia (or any similar payment method available in Australia) and no other mandatory fee will be added during the booking process when a fee free payment method is used;
  • ensure that prices displayed on the eDreams platforms will be accompanied by clear information about the conditions of availability of such prices;
  • display on its platforms, in a visible manner, a feature enabling consumers to update the headline price by selecting or modifying the payment method used;
  • within four months of the commencement date, appoint a director or senior manager of the business as the Compliance Officer;
  • within four months of the commencement date, ensure that the Compliance Officer attends practical training, administered by a suitably qualified compliance professional or legal practitioner with expertise in competition and consumer law, that focuses on sections 18, 29(1)(i) and 48 of the ACL; and
  • cause all employees of eDreams whose duties could result in them being concerned with conduct that may contravene sections 18, 29(1)(i) and 48 of the ACL to receive regular (at least once a year) training, administered by the Compliance Officer, that focuses on sections 18, 29(1)(i) and 48 of the ACL.