Wigley & Company - Barristers and Solicitors.

$189 Fares to Sydney*

May 2006

* Well, actually this article is about marketers being prosecuted when an ad has a headline price, and extra cost items are linked by asterisk in the small print.

The Commerce Commission has successfully prosecuted Air New Zealand for misleading ads about airfares. They boldly stated headline prices that did not include additional costs (insurance, fuel surcharges and levies). These were outlined in the small print. What to do in similar circumstances will depend on the particular context. But this decision gives some idea of the risks not only for treatment of price but other selling points too. Importantly, the Commission is endeavouring to appeal the decision. This may lead to the boundaries being set more stringently against marketers. In the meantime, it is prudent to take a conservative approach. In this article we address these issues.

 
Last updated: Monday 25th August 2008

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