OFT Takes Action On Cheap Flights Debit Card Charges
Britain's Office of Fair Trading (OFT) has issued a strong statement on the subject of fees charged by travel companies for booking cheap flights by debit card. The statement followed a 90-day investigation, in which the watchdog discovered much evidence of so-called "drip pricing" among travel operators offering cheap flights to Europe and beyond.The OFT said that it would be pursuing enforcement notices against companies that did not make information about such fees clear and upfront, and who charged excessive sums for the fees, declaring that it is "currently discussing surcharging practices with a number of passenger travel companies to secure compliance with Consumer Protection Regulations". It also said that it would recommend to the British government that the law be changed to scrap the fees altogether.
OFT Goods and Consumer Group senior director Cavendish Elithorn said: "You can't buy online with cash and people are frustrated about being asked to pay for paying. Consumers find it harder to shop around and find the best deal if they have to invest time and effort in discovering surcharges. This also weakens competition between retailers, which is bad news for the UK economy."
One cheap flights carrier that backed the ruling was Monarch Airlines, which recently announced the abolition of charges for debit card bookings, following an "intensive six-month review". The airline also cut the amount it charges customers for booking cheap flights by credit card and said that it was moving to abolish these, if agreement could be made with the credit card providers.
Monarch chief executive Conrad Clifford explained: "Our customers expect an upfront and transparent pricing structure from their airline and it's good to see that in light of this important decision, other airlines will now have to follow our lead.
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This also weakens competition between retailers, which is bad news for the UK economy." One cheap flights carrier that backed the ruling was Monarch Airlines, which recently announced the abolition of charges for debit card bookings, following an
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