Here’s an overview of the latest travel law updates from key regions, focusing on consumer protection, competition, and regulatory changes impacting the travel industry.
Australia: Webjet Prosecution for Misleading Online Conduct
In November 2024, the Australian Competition and Consumer Commission (ACCC) initiated legal proceedings against Webjet for misleading and deceptive conduct related to its online operations. The key allegations include:
Failure to disclose fees: Webjet did not prominently disclose its “Webjet servicing fee” and “booking price guarantee” on its social media platforms between November 2018 and November 2023. While these fees were disclosed on the website and promotional emails, they were not clearly visible, being placed at the bottom of the screen.
Issuing misleading booking confirmations: Webjet issued booking confirmations to customers where no actual airline booking had been made. This affected 382 bookings, with Webjet offering either a refund or the option to rebook at an additional cost. The ACCC is investigating whether such remedies were sufficient.
Key Takeaways:
Disclosure of fees: Fees must be clearly disclosed on all platforms, not buried in fine print.
Booking confirmations: Confirmations should only be issued once the booking is confirmed by the airline. If not, the confirmation should clearly state that the booking is subject to airline approval.
Offering refunds or additional fees to correct the booking is not deemed a sufficient remedy.
EU and UK: Investigation into Airlines for Greenwashing
In April 2024, the European Commission and EU consumer authorities launched an investigation into 20 airlines over potential misleading claims related to greenwashing. The investigation centers on airlines’ climate-related statements, including:
- Claims of carbon offset programs.
- Fees charged to passengers for contributing to sustainable aviation practices.
- Usage of sustainable aviation fuels.
The investigation is also looking at whether such claims mislead consumers about airlines’ environmental impact. The UK Competition and Markets Authority is advocating for greenwashing to be prohibited as an unfair commercial practice, signaling a broader trend towards regulating environmental claims in travel.
Key Takeaways:
OTAs’ role: Online Travel Agencies (OTAs) should be cautious in promoting sustainability claims, relying only on verifiable data from airlines.
Future scrutiny: The focus is currently on airlines, but OTAs and other intermediaries may face future scrutiny regarding their sustainability claims.
Greece and the EU: Greek Hotels to Sue Booking.com Over Pricing Policies
The Hellenic Chamber of Hotels in Greece has announced plans to file a lawsuit against Booking.com. The case focuses on Booking.com’s “best price” policies, which prevent hotels from advertising lower rates than those offered on the platform. These policies are seen as anti-competitive, and the lawsuit is expected to rely on a September 2024 European Court of Justice ruling that found such pricing clauses harmful to hotel operators. The case also invokes Greek constitutional principles related to freedom of contract.
The outcome of this case could have significant ramifications across the EU, especially regarding price parity clauses that limit hotels’ ability to offer competitive rates outside of platforms like Booking.com.
Key Takeaways:
Anti-competitive practices: The lawsuit against Booking.com could set a precedent regarding the fairness of price parity clauses in the EU.
Implications for OTAs: If successful, this case may lead to similar lawsuits in other EU member states, making price parity clauses subject to closer scrutiny.
Thailand: New Platform Economy Law on the Horizon
Thailand’s Electronic Transactions Development Agency (ETDA) is working on a draft Platform Economy Act (PEA), which will regulate digital platform services. The law is expected to be influenced by EU regulations like the Platform-to-Business Regulation and the Digital Services Act. The key focus areas include:
Consumer protection: The PEA will impose duties on platform operators, including ensuring safe harbor protections for intermediaries not complicit in illegal activities.
Competition: The PEA will target “gatekeeper” platforms that control access to services. Prohibited conduct for gatekeepers could include tie-ins, parity clauses, and anti-steering provisions.
The draft law is still in its early stages, but once enacted, it is expected to replace the Royal Decree on Digital Platform Services.
Key Takeaways:
Definition of “very large” platforms: It remains to be seen whether this will be defined based on operations within Thailand or globally.
Global harmonization: The PEA’s formulation is being influenced by international regulations, raising questions about its alignment with existing laws.
Enforcement: How the ETDA will enforce compliance with the new law will be crucial for its effectiveness.
Conclusion
The travel industry is experiencing significant legal developments globally, with a focus on consumer protection, competition, and sustainability. These changes highlight the increasing scrutiny of business practices in the travel sector, particularly in terms of transparency, environmental claims, and pricing fairness. Businesses, especially OTAs, need to stay informed about evolving regulations to ensure compliance and avoid potential legal challenges.
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