
Australian car hire firms and other travel companies who do not declare the total price of goods and services are to be fined according to the Australian Competition and Consumer Commission.
The ACCC is still fighting to get some operators to comply with the new laws protecting customers from omissions about pricing in advertising, over a year after the amendments were made to the Trade Practices Act.
Price structuring with airlines was the initial prompt for the reforms which were enacted in May 2009 to prevent companies form understating the total price of goods and services in a range of industries including car rental.
Those selling travel products and motor vehicle hire had been viewed as the worst offenders in the practice of so-called component pricing, where the advertised price omitted extras that were compulsory and had asterisked in fine print.
The consumer watchdog spent most of 2009 urging businesses to comply with the laws; however chairman Graeme Samuel is now warning that the commissions low-key approach of educating businesses will soon be replaced by litigation and enforcement.
It was announced late last year that hire car firm Avis had agreed to apologise and offer refunds to affected customers last month after trying to cover up the actual cost of its compulsory rental charges on its website.
The company did not disclose that a $10 per day special on GPS navigation did not include a mandatory $3.50 administration fee and 10 per cent GST, bringing the total about to almost $15 per day.

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