In the first stage of a joint European Commission-member state crackdown on misleading airline ticket websites, two local websites were found presenting misleading advertising and unfair practices, such as hidden surprises in the small print of contracts.
The websites in question have not been named, but a naming and shaming exercise could be carried out in future if the websites in question fail to correct the information posted or clarify their positions with the authorities.
In all, 14 Maltese websites were surveyed by the authorities. While two were found to have had irregularities, they will both be investigated by the Maltese national authorities and have not been referred to the Consumer Protection Co-operation Network – a network of national enforcement authorities from 27 member states, set up under the Consumer Protection Co-operation Regulation. The fact they have not been referred to the CPC, indicates the violations on the Maltese sites were of a less severe nature than others.
In all, the 15-country website sweep involved the investigation of 447 websites, which yielded 226 violations – 63 of which will be followed up by the CPC.
The clampdown, the results of which were announced yesterday, covered Europe’s leading airlines, low cost carriers as well as other websites selling airline tickets and the inquiry’s results show over 50 per cent of websites had irregularities.
In particular, the irregularities related to price indications, contract terms and clarity of proposed conditions.
The sweep was carried out in the week of 24-28 September and represented the first EU-wider joint enforcement action on consumer rights.
The sweep involved the national enforcement authorities in Malta, Austria, Belgium, Bulgaria, Cyprus, Denmark, Estonia, Finland, France, Greece, Italy, Lithuania, Portugal, Spain, Sweden and Norway.
The sweep check is to be followed by an enforcement phase, in which companies will be contacted by authorities and asked to correct websites or clarify their position.
EU Consumer Affairs Commissioner Meglena Kuneva yesterday gave companies involved four months to respond. In addition to facing possible legal action, Ms Kuneva said she would not hesitate to name and shame companies who fail to take action to bring sites in line with EU law once that deadline expires.
At the end of September, participating national authorities used common methodology and pre-defined search terms such as “air-ticket, cheap flight, travel, last minute, air miles, fly cheap” to identify and investigate web sites selling air tickets, targeting consumers in their countries.
Following the sweep, companies will be contacted by authorities and asked to provide clarification or change their practices. Those which fail to do so could face legal action leading to fines or closure of their websites.
In practice, national authorities will investigate and take enforcement action for national cases, while in cross border cases, such as when a trader operates from another country, they will request assistance from colleagues in other EU authorities through the CPC.
The sweep focused on three key practices – clear pricing, availability and fair contract terms.
Clear pricing implies that a clear indication of the total price should be given in the headline price first advertised on a website, while additional charges such as taxes, booking or credit card fees should be clearly indicated from the start rather than added at a later stage of the booking.
Availability refers to the practice in which any conditions on the offer, particularly limitations on the availability of an offer, should be clearly indicated. Prices and special offers are often used to lure consumers into the process of booking a flight but in reality there are only a very limited number of seats available under the advertised offer.
Fair contract terms, meanwhile, means that general contract terms must be clearly indicated, easily accessible and fair. Unfair practices include mandatory insurance attached to an offer, or where consumers have to explicitly opt out of an insurance clause, rather than opt-in. Contract terms and conditions must be available in the language of the consumer.
“Whether you are in Brussels or Barcelona, Munich or Manchester, consumers deserve clear and fair pricing and no hidden surprises in the small print of contract terms,” she commented yesterday.
“We discovered that about 50 percent of airline ticket selling websites are currently letting Europe’s consumers down. The figures released today show that there is a substantial problem in the industry. This is a European issue which requires Europe-wide action.”
She added, “Today I am issuing the strongest possible warning to companies to take swift action to put their house in order. Once the January deadline expires I will not hesitate to go further, and name and shame companies which are still breaking the law.”