EU says vast majority of consumers being cheated by travel, airline Web sites

2008-05-08 15:48:11 -

BRUSSELS, Belgium (AP) - A third of people who shop for flights on airline and other travel Web sites in the EU are being cheated by misleading ads and price schemes, the European Commission said Thursday, threatening legal action to stop such practices.
The European Union's consumer protection chief gave airlines and tour operators one year to fall in line with consumer rules or face court action and possible fines.
«It is unacceptable that one in three consumers going to book a plane ticket online is being ripped off or misled or confused,» said Meglena Kuneva, the EU's consumer protection commissioner.
«My message to industry is clear: act now or we will act,» she said.
Preliminary findings of an EU investigation indicate the main problems on the sites are misleading pricing and vague conditions and contract terms. Airlines and other travel companies often add airport taxes, handling fees, baggage and seating charges and a variety of other costs on top of the prices that first appear on Web sites.
«The price first advertised on a Web site should be the final price,» said the European Commission, the EU's executive office.
Kuneva said such problems existed «in all sectors» of the airline industry, including both discount and full-fare carriers.
The EU is hoping to raise the awareness of bargain hunters so they will not be fooled by hidden charges or unclear small print.
Kuneva said legal restrictions in most EU nations prevented her from «naming and shaming» the airlines and tour operators suspected of breaking EU laws.
Norwegian and Swedish consumer rights authorities, however, listed many of the companies involved on their Web sites. They included Irish low-cost carrier Ryanair, Austrian Airlines and Blue1, a Finnish airline fully owned by Scandinavian airline operator SAS AB.
An initial review in September found that more than 50 percent of sites checked were misleading consumers on tickets advertised as cheap but which were often far from it once hefty charges were added.
Regulators said 137 of 386 Web sites checked in February _ or nearly one in three _ violated EU consumer laws. Those sites are now under a closer investigation and represent around 80 companies.
The Norwegian consumer group said the investigation found, for example, that Austrian Airlines charged an extra 100 kroner (¤12.69; US$19.58) on its Web site that was not included in the advertised price. The airline has now dropped the fee, the consumer group said.
Similarly, it said, Ryanair «troubled» its customers with extra fees if they did not pay with a debit card. Fees were also charged for priority boarding, which the Norwegian group said was «an unreasonable demand.
The Swedish and Norwegian groups also listed several international tour operators that run sites across Europe _ including Travelstart, Sky Tours and Travellink _ that it said were under investigation.
About 700 million travelers fly on EU airlines each year and the sector draws the most consumer complaints, Kuneva said.
Monique Goyens, head of the BEUC consumer advocacy group, called on EU regulators to do more to crack down on misleading information on prices, availability of cheap flights and extra costs like insurance, which are often presented incorrectly as compulsory.
The 60-carrier European Regions Airline Association has already called for passengers to be given the actual price upfront. But the group has rejected calls by EU lawmakers for airline prices to come with a detailed breakdown of costs, including airport security and fuel surcharges.
On the Net
ec.europa.eu/consumers/enforcement/sweep/index_en.htm