AusLeisure

The Australian Competition and Consumer Commission (ACCC) is to target companies that use incremental booking fees on online purchases for items such as entertainment and sport tickets and in airline bookings.

In a crackdown on what it refers to as "drip pricing", the ACCC is targeting the gradual disclosure of fees and charges over an online booking process - a common feature of online purchases.

Explaining the move, ACCC Chairman Rod Sims said action would be taken on the practice, which caused "competition and consumer detriment."

Sims added "consumers see a 'headline' price advertised at the beginning of the booking process but when they progress to the payment phase, additional fees and charges have been added.

"Consumers purchasing airfares or sporting event tickets are all too familiar with this practice (which) involves a lack of transparency which may mislead consumers, and it can also make it difficult for businesses to compete on a level playing field."

Sims comments were delivered in a speech explaining the consumer watchdog's key focuses for 2014 made to the Committee for Economic Development of Australia (CEDA) on Friday 21st February.

The regulator said comparator websites that mislead consumers, as well as large companies that pose as small businesses would also be targets for action.

21st February 2014 - CALLS FOR NATIONAL CRACKDOWN ON SCALPING AT FEDERAL SENATE TICKETING INQUIRY

10th January 2014 - ACCC WARNS FITNESS BUSINESSES ABOUT THE TERM 'NO CONTRACTS'

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