The Federal Court has ordered Nonchalant Pty Ltd, a past operator of Abel Rent a Car in Brisbane, to pay penalties of $30,000 following action by the Australian Competition and Consumer Commission for misleading advertising.
The ACCC investigated after a complaint from a consumer that when they picked up a car from Abel Rent a Car, they had to pay more than the price they were quoted online.
The ACCC examined the Abel Rent a Car website and found that vehicles were advertised for hire at a daily rate of $35 per day but additional mandatory fees were added including a $5 per day ‘vehicle registration recovery fee’ and a 7.5 per cent ‘administration fee’.
These additional fees meant that the true cost of hiring the car was $43.54 per day, not $35 as advertised.
"Businesses must not mislead consumers with a headline price that contains hidden and additional charges. Advertising should display a total minimum price that includes any tax, duty, fees or levies,” ACCC Chairman Rod Sims said.
“The ACCC has previously put the rental car industry on notice to improve its level of compliance with the Australian Consumer Law. This penalty is a clear sign that the courts accept the seriousness of this conduct,” Mr Sims said.
Justice Gordon stated in her judgment that the disclosure of additional fees and charges on subsequent web pages during a booking were not sufficient to negate the effect of misleading representations on the home page of a website.