Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Decision to prosecute Freedom Air


Media Release

Issued 14 March 2002/21


Commerce Commission takes airline industry complaints seriously: decision to prosecute Freedom Air

The Commerce Commission is warning the airline industry to ensure its practices for advertising airfares do not breach the Fair Trading Act or face further prosecutions.

The warning to the industry follows a decision by the Commission to bring charges against South Pacific Air Charters Limited, trading as Freedom Air, for alleged breaches of the Fair Trading Act.

The Commission alleges that Freedom Air’s advertised airfares were misleading. In addition to the advertised airfares, passengers were required to pay costs in the form of Civil Aviation Authority (CAA) and insurance ‘levies’ which were either not disclosed or inadequately disclosed in advertising.

Also, the Commission alleges that the insurance “levy” was in fact an operational cost and that Freedom Air was inaccurately representing the nature of this cost.

This latest action by the Commission follows an earlier prosecution of Freedom Air in October 2000 for making false or misleading claims about the prices of its “Christmas airfare sale”.

Whilst the Commission’s allegations relate to Freedom Air, the Commission is concerned that other airlines might be advertising in a similar way.

“Other airlines might also be misrepresenting the costs of flights and the nature of insurance and other costs,” said Commission Chair John Belgrave.

“We are now investigating to see if this is a widespread practice or whether Freedom Air is the only airline operating in this way.”

“Consumers must be able to rely on the overall impression created by advertising in this industry. All important terms and conditions must be accurately and clearly explained.”

The Commission will take further action if it finds other airlines are advertising in a misleading manner.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news