Online providers have been warned that advertising the lowest
price on a web landing page, then adding admin costs, insurance,
booking fees and other expenses as you work through the booking
process will be consider unfavourably by the Australian Competition
and Consumer Commission ('ACCC').
Just ask Jetstar and Virgin. The ACCC has hit them with fines
totalling over $750,000 for doing just that.
The ACCC first began openly tackling the issue of drip pricing
in 2014. Drip pricing, according to the ACCC, is defined as the
incremental disclosure of fees and charges over an online booking
process.
Commonly, the conduct occurs when products advertised for one
price are then automatically increased by taxes, credit card
charges, booking and service fees, package and handling costs or
postage fees later in the booking process. Such activity is deemed
to be misleading and deceptive conduct.
