Consumer Council Welcomes Oft’s Advertising And Pricing Study
Wednesday 19 August 2009
Consumer Council research finds air passengers can pay between £33 and £57 more than advertised fare.
The Consumer Council has welcomed a commitment from the Office of Fair Trading (OFT) to conduct a market study on the way goods and services are advertised and priced. The move follows the Consumer Council’s submission of an in depth report to the OFT on the impact of additional charges for consumers.
Consumer Council Chief Executive, Antoinette McKeown, said: “Our research has found that depending on the airline*, passengers can face an increase of £33.47 (40 per cent) from the advertised return fare to the final fare, and that’s only taking into consideration taxes and charges. Add one piece of luggage, a payment charge for paying by credit or debit card and any check in fees and the increase soars to £56.78 (67 per cent) **.
“The Consumer Council has been listening to the views of consumers on this issue and is also concerned about those customers who face a charge from telephone companies because they pay their bill by cash or cheque instead of direct debit. This charge is particularly unfair given that research has shown consumers here are less likely to have a current account ***, and without one it is not possible to pay by direct debit. Essentially it means that people with less money to start with are often being asked to pay more, just because they are paying by cash or cheque.
“The Consumer Council believes charges for actions that are not optional such as paying or checking in should be included in the overall cost that is advertised to the consumer.
“We are delighted that the Office of Fair Trading will now conduct a market study into advertising and pricing. The Consumer Council will continue to represent NI consumers to the OFT, so we encourage anyone who would like to express views about the matter to contact the Consumer Council on 0800 121 6022,” concluded Antoinette McKeown.
ENDS
Notes to Editor
- Consumer Council media contact: Keelin Kelly, telephone, 028 9067 4807 or e-mail, kkelly@consumercouncil.org.uk
- The Consumer Council’s ‘Cost of Paying’ report is available online at www.consumercouncil.org.uk
- * Easyjet and BMI include taxes and charges in their advertised fare.
- **Based on booking four weeks in advance and examining routes to seven European and UK destinations across scheduled services operating out of Northern Ireland with travel between a Friday and Sunday, the average advertised return fare is £84.23. The final cost with taxes and charges added only (i.e. no baggage/insurance etc) is £117.70. Therefore the increase from advertised fare to final fare including taxes and charges only is £33.47 or 40% (non optional charges).The final cost with taxes and charges added and one piece of luggage, the payment charge (credit/debit card) and any compulsory check-in fees is £141.01.Therefore the increase from advertised fare to final fare including taxes and charges and other additional charges is £56.78 or 67%. NB this does not include further optional charges for priority seating, travel insurance etc.
- ***16 per cent of households in NI do not have a current account compared to 10 per cent of households in the UK (Family Resources Survey 2007).
- The Consumer Council is an independent consumer organisation, working to bring about change to benefit Northern Ireland’s consumers.The Council campaigns for high standards of service and protection and a fair deal for all. It also carries out research, gives advice and publishes reports and other publications. It deals with individual complaints about buses, trains, planes, ferries, natural gas, electricity, coal and water.
- For more information, visit our website at www.consumercouncil.org.uk
Related Documents
- The Cost of Paying - 568.2KB PDF Document
