In response to the 1999 Swiss canyoning disaster Contiki Holidays (Australia) Pty Ltd has provided the Australian Competition and Consumer Commission with a court-enforceable undertaking to reform its quality assurance systems.
The Swiss courts have already determined criminal liability for the tragedy. On 11 December 2001, a Swiss judge found six managers of the now defunct Swiss company, Adventure World guilty of manslaughter by culpable neglect. Each was given a suspended sentence of between three and five months and was fined. In September 2002 those convicted withdrew their appeals and accepted their criminal responsibility for the accident. The families of the victims are now free to lodge compensation claims with the company's insurer.
After an investigation, the ACCC considered that Contiki might not have had reasonable grounds for making representations on its website and in advertising material promoting the European Tour for July 1999. The representations included, that Contiki Travel Europe Limited would provide a safe environment where a customer's personal safety and security would never be compromised.
The ACCC considers that such representations, made in Australia by Contiki Australia, risked being misleading or deceptive in contravention of section 52 of the Trade Practices Act 1974.
Contiki Australia sells, in Australia, the tours organised and conducted by Contiki Europe in Europe. Several parents of the Australian victims had lodged complaints with the ACCC alleging that Contiki Europe's advertising, some of which had been distributed by Contiki Australia, had induced their children to undertake a Contiki Europe tour and to leave safety concerns to the Contiki Europe tour guides while on tour.
Although it is not alleged by the ACCC that Contiki Australia was in any way responsible for the tragedy itself, the ACCC is nevertheless of the view that it may have induced Australian consumers to travel with Contiki Europe in July 1999 on assurances of safety, when these assurances could not be adequately supported. For jurisdictional reasons, the ACCC’s investigation did not consider issues of negligence, or extend to the conduct of either Contiki Europe or Adventure World, but was limited to the safety representations made in Australia by Contiki Australia.
In concluding that there may not have been reasonable grounds for Contiki Europe's promotional representations, which were made in Australia by Contiki Australia, the ACCC alleged that:
- the nature, risks or safety of the activities involved in the canyoning excursion offered by Adventure World had not been thoroughly and adequately investigated;
- Adventure World had not been thoroughly and adequately investigated with regard to the safety measures it had in place;
- travellers undertaking the Contiki Europe tour in July 1999 may not have been provided with sufficient information in respect of canyoning and its risks; and
- Adventure World was not required to cease or restrict excursions likely to be jeopardised by a storm or other event.
Without admitting liability, Contiki Australia has provided undertakings to the ACCC that:
- it will implement a quality assurance system aimed at providing reasonable and verifiable grounds for any representations concerning safety and well being of Contiki travellers that are contained in advertising material distributed by Contiki, including references to third party operators;
- appoint a Quality Assurance Officer with overall responsibility for quality assurance systems;
- implement an auditing process in relation to its quality assurance system;
- it will not make representations concerning standards of safety and quality control unless they can be or have been verified by its quality assurance system or auditing process;
- it will refrain from distributing any new advertising and promotional materials containing representations concerning issues of safety until such time as the quality assurance and auditing systems are in place; and
- it will implement a trade practices compliance program for staff that is in accordance with the Australian Standard for Compliance Programs AS3806-1998, with particular regard to the consumer protection provisions of the Act.
"While the ACCC acknowledges the cooperation of the Contiki group of companies in resolving this matter, it is unfortunate that a tragedy such as this must occur before safety procedures are reviewed", ACCC Chairman, Professor Allan Fels, said today.
"This is a warning to the travel and tourism industry to ensure all safety procedures are in place prior to providing products or services to the public, particularly where assurances of safety are a feature of their promotional material".
Further information
Professor Allan Fels, Chairman, (03) 9290 1812 or pager (02) 6285 6170
Ms Lin Enright, Director, Public Relations, (02) 6243 1108 or mobile (0414) 613 520
MR 301/02
2 December 2002