AIRBnB IRELAND - IRELAND COMPANY REGISTRATION NUMBER 511825 (Airbnb Ireland)
On 12 October 2015 the ACCC accepted a court enforceable undertaking from Airbnb Ireland in relation to price representations made on its Australian online platforms likely to contravene the ACL.
The Airbnb group of companies operate online platforms (i.e. website, mobile site, and apps) around the world as a marketplace connecting travellers with local accommodation hosts. Airbnb Ireland (a subsidiary of Airbnb Inc) has operated the Airbnb online platforms accessible by consumers located in Australia since November 2012. Airbnb Ireland charges the travelling consumer a mandatory service fee for making an accommodation booking on these online platforms and may also charge or pass on other fees including a cleaning fee which, when applied by a host, is mandatory.
The ACCC considers that since about November 2012 Airbnb Ireland engaged in misleading and deceptive conduct and made misleading representations in certain instances by failing to adequately disclose mandatory service fees and/or cleaning fees on search results pages and/or individual accommodation listing pages on one or more of its Australian online booking platforms. Whether or not Airbnb Ireland provided adequate disclosure of these fees in many cases depended on whether the consumer had already selected their preferred accommodation dates.
Aribnb Ireland has acknowledged the ACCC’s concerns and provided the ACCC with a s87B undertaking that, by no later than 31 December 2015, it will not:
represent a headline price without including, when it is quantifiable, mandatory fees, including the Service Fee and any applicable Cleaning Fee, when consumers search for accommodation listings on all websites, mobile sites and application software operated by Airbnb Ireland for the purposes of allowing Australian consumers to book accommodation, and
represent a headline price without disclosing, when it is not quantifiable, the existence of the mandatory fees, including the Service Fee and any applicable Cleaning Fee, when consumers search for accommodation listings on all websites, mobile sites and application software operated by Airbnb Ireland for the purposes of allowing Australian consumers to book accommodation.
Airbnb Ireland has also undertaken to establish and implement a compliance program for a period of three years which is designed to minimise Airbnb Ireland’s risk of future breaches of the ACL and to ensure its awareness of the responsibilities and obligations in relation to ACL requirements.
VACACIONES eDREAMS, SL (eDreams)
On 12 October 2015 the ACCC accepted a court enforceable undertaking from eDreams in relation to claims made on the eDreams Website, Mobile Site and Application (collectively referred to as the eDreams platforms). eDreams carries on an online travel and accommodation booking service business in Australia on these eDreams platforms.
The ACCC considers that from at least January 2014 until about December 2014, eDreams made part price representations on its website by displaying a headline price which did not include the applicable service fee or payment fee. Furthermore, that eDreams did not adequately disclose the existence or amount of these fees on the eDreams Mobile Site and App.
To address the ACCC’s concerns eDreams provided the ACCC with a s87B undertaking that it will for a period of three years (unless otherwise stated):
ensure that prices displayed on the eDreams platforms can be booked by paying with at least one fee free payment method in Australia (or any similar payment method available in Australia) and no other mandatory fee will be added during the booking process when a fee free payment method is used
ensure that prices displayed on the eDreams platforms will be accompanied by clear information about the conditions of availability of such prices
display on its platforms, in a visible manner, a feature enabling consumers to update the headline price by selecting or modifying the payment method used
within four months of the commencement date, appoint a director or senior manager of the business as the Compliance Officer
within four months of the commencement date, ensure that the Compliance Officer attends practical training, administered by a suitably qualified compliance professional or legal practitioner with expertise in competition and consumer law, that focuses on sections 18, 29(1)(i) and 48 of the ACL, and
cause all employees of eDreams whose duties could result in them being concerned with conduct that may contravene sections 18, 29(1)(i) and 48 of the ACL to receive regular (at least once a year) training to be administered by the Compliance Officer that focuses on sections 18, 29(1)(i) and 48 of the ACL.
ARNOTT’S BISCUITS LTD (Arnott’s)
On 20 November 2015 the ACCC accepted a court enforceable undertaking from Arnott’s in relation to representations about its Shapes Light & Crispy biscuits. Arnott’s has admitted that its conduct was likely to contravene the ACL and to address the ACCC’s concerns has agreed that it will:
for a period of three years, not make a claim comparing its product with a third party product without:
clearly identifying the products that are the subject of the comparison in a sufficiently prominent manner, and
ensuring the comparison is appropriate having regard to all facts and circumstances
publish a Corrective Notice on its website and in the nationally published industry magazine Foodmagazine, and
establish and implement a supplementary compliance program designed to minimise Arnott’s’ risk of future breaches of the provisions of the ACL concerning false, misleading or deceptive representations or conduct.
WFI INSURANCE LIMITED trading as LUMLEY RETAIL WARRANTY (Lumley)
On 7 December 2015 the ACCC accepted a court enforceable undertaking volunteered by Lumley following concerns being raised about customer care plan brochures offering extended warranties underwritten by Lumley for consumer products supplied by retailers. The brochures had been in circulation since 2011.
Lumley is an extended warranty underwriter and claims administrator for a number of Australian retailers of household electronic and white goods who sell extended warranties (known as customer care plans) to consumers.
The ACCC was concerned that the brochures did not sufficiently identify the degree of overlap between the remedies available under the extended warranty customer care plans purchased by consumers and those already available to consumers under the consumer guarantees contained in the ACL. As a result, the ACCC considered that the brochures had the potential to mislead consumers.
To address the ACCC’s concerns Lumley has committed to taking the following measures in a court enforceable undertaking for a period of two years:
revise the customer care plan brochures to include information necessary to facilitate a comparison of the features of the plan against the remedies available under the ACL
provide compliance training to Lumley and retailer staff, and
design and work with retailers to implement a program for monitoring and if necessary improving retailers’ practices of selling customer care plans.
OPTUS INTERNET PTY LTD (Optus Internet)
On 16 December 2015 the ACCC accepted a court enforceable undertaking from Optus Internet for allegedly making misrepresentations about the data transfer rates (speeds) offered on its broadband cable service and particular plans. Optus has also paid a penalty of $51,000 following the issue of five Infringement Notices by the ACCC.
Optus internet is a provider of internet services to residential and small business customers in Australia. Between January 2015 and August 2015 Optus Internet used the words ‘NBN-like speeds’ and words to similar effect (NBN-like speeds representations) through a variety of mediums including websites, billboards, posters, catalogues and flyers in the promotion of its broadband cable service and particular broadband cable plans.
The ACCC was concerned that Optus Internet’s use of the term ‘NBN-like speeds’ represented that the advertised cable broadband plans provided speeds that were comparable to the speeds available on the National Broadband Network (NBN) plans when that was not the case for the plans Optus Internet advertised. To address the ACCC’s concerns Optus Internet has provided the ACCC with a s87B undertaking in which it has admitted that its conduct may have contravened the ACL and that it will:
for a period of five years not use ‘NBN-like speeds’ representations in the promotion of its cable broadband internet service, in circumstances where it does not offer upload and download speeds which are comparable to the upload and download speeds available on the NBN
write to its customers who acquired its cable broadband internet service between 1 January 2015 and 23 August 2015 (the Customers) advising them of the manner in which Optus Internet’s use of the term ‘NBN-like speeds’ was misleading
allow the Customers to cancel their cable broadband internet service at no cost and refund to them any start-up fee they paid to acquire the service, and
arrange for an independent third party to review its trade practices compliance program and implement any changes recommended by that party.
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