ACCC must see the light
I am intrigued at the reports in Backpacker Trade News that the Australian Competition and Consumer Commission (ACCC) is warning the backpacking sector it faces an audit next year.Why the backpacking sector?
The examples given of misleading price advertising apply to the whole of the tourism industry.
And what has the ACCC been doing these past few years? The ‘lowest prices guaranteed’ slogan was stopped on January 31 2005, almost four years ago.
The answer is – very little.
Let me explain. In 1999, the ACCC issued a comprehensive guide for the travel industry, which it called ‘Travel and tourism – and the Trade Practices Act’. In August 2006, the ACCC withdrew that guide, stating it was withdrawn for revision. In the same month, the ACCC issued a guide on pricing issues only – ‘Price advertising and the travel industry’, which is current. You can download a copy from www.accc.gov.au.
There has been no sign of the re-appearance of the 1999 guide, given that the Trade Practices Act and the ACCC cover many compliance issues in addition to price advertising.
So what is going on now? The ACCC is issuing letters of warning to backpacker operators and tour operators based upon their ‘internet sweeps’, which have triggered alarms in the ACCC.
But what do the operators have to guide them, other than a price advertising guide for the travel industry which is over two years old? Nothing. The correct response for the operators receiving those letters, and the whole of the backpacking industry, should be to write to the ACCC to say they will gladly comply with whatever guide the ACCC wishes to issue to the industry. However, until a guide is issued, they will try their best but in many ways they are working in the dark.
Australian travel and tourism lawyer Anthony Cordato contributes a regular column to Backpacker Trade News. Got a question for Anthony? E-mail ian@backpackertradenews.com or visit www.tourismlegal.com.au.
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