The European Commission
has published the mid term report on an EU wide enforcement investigation,
involving 15 EU national authorities including Malta against
misleading advertising and unfair practices on airline ticket selling websites.
The report shows that
there are "serious and persistent consumer problems" throughout the
airline industry as a whole. 1 in 3 websites surveyed have had to be followed up
with enforcement action over the last 7 months for breaches of EU consumer law.
Over 50% of those websites have been corrected during this time.
The exercise was carried
out by the EU Member States' enforcement authorities (the Consumer Protection
Enforcement Network – CPC, which came into being at the end of 2006) and was
co-ordinated by the European Commission.
The main results show
that 1 in 3 of the
web sites checked in Sept 2007 required follow up enforcement action for
confirmed breaches of consumer law (386 websites checked for 13 reporting Member
States, 137 required enforcement action).
Many websites seem to have
multiple problems – i.e. breaches of the law on several fronts. The figures for
problems found represent the number of times the problem was encountered - and
clearly there are more problems than sites, as many sites has several problems.
The main findings are set out below.
The biggest problem found
concerned the information given on the final air ticket prices (58%). A
widely spread practice reported by authorities consists in dividing the final
price of an air ticket into different components, using the airfare for
advertising purposes and so attracting consumers to a given ticket selling site
with what seem cheap flights.
For the consumers, the
final price to pay when actually booking the ticket is generally higher due to
a series added charges that vary from so called “airport charges” to handling
fees, booking fees or charges related to credit card payments, priority
booking, luggage, fuel etc.
Authorities found that
websites did not always contain sufficient information concerning the actual
availability of seats and/or the conditions attached to the advertised
prices (15% of the total of findings). Particularly attractive offers are often
used to lure consumers into certain sites only to discover that no seat could
be booked to the promotional tariff or only exceptionally.
The countries that
participated in this first joint exercise are Austria,
Belgium, Bulgaria, Cyprus,
Denmark, Estonia, Finland,
France, Greece, Italy,
Lithuania, Malta, Portugal,
Spain, Sweden.