ACCC starts another round of checks
The Australian Competition and Consumer Commission (ACCC) is performing another round of checks on backpacker advertising in the latest phase of its crackdown on the sector.At last year’s Adventure & Backpacker Industry Conference, ACCC Small Business Manager for NSW Martino Santi warned delegates there would be an audit “in the first half of 2009” to ensure advertising complied with the Trade Practices Act.
And this week, ACCC Assistant Director Shannon Murphy told Backpacker Trade News the initial audit raised a number of concerns, mainly about pricing, which had been raised with transgressors and apparently dealt with.
However, she added while proofs of new adverts had been sent to the ACCC for approval, it would now be checking backpacker advertising to ensure the approved artwork was still being used.
The move comes in the wake of the Clarity in Pricing Bill, which became law in November 2008 and requires travel agents and airlines to include the full price, including all taxes and charges, in their advertising.
Introducing the Bill to the Federal Parliament in September last year, Consumer Affairs Minister Chris Bowen said customers should not be given the impression something is cheaper than it really is and pledged to give them the power “to make the best decisions about what they buy”.
The move was welcomed at the time by backpacker retailers who said it would prevent operators trying to remain competitive by offering low net rates to agents then charging customers more money on arrival.
However, operators argued the onus was on the agent to disclose the full price to the client during the booking process.
What’s your view of the ACCC crackdown? Are operators or agents leading the industry into disrepute? To comment on this story, email alice@backpackertradenews.com
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