The Australian Competition and Consumer Commission has instituted proceedings against the operators of the Abel Rent A Car business operating in Brisbane, Queensland.
The Abel business is owned by Nonchalant Pty Ltd, and the ACCC alleges that in both online (www.abel.com.au) and print advertising, Abel misled potential customers about the true cost of hiring some of its vehicles.
The alleged misleading representations concerned Abel advertising a price to hire a vehicle, when that price did not include additional mandatory fees that were charged in addition to the advertised price. Those additional fees included an ‘administration fee’ and a ‘vehicle registration recovery fee’.
“Businesses cannot advertise a price for their goods or services then later add additional mandatory fees and charges, which make the total cost more expensive than initially represented,” ACCC Chairman Rod Sims said.
The ACCC alleges that the conduct breached sections 18 and 29(1)(i) of the Australian Consumer Law and is seeking from the court orders including declarations, penalties and costs.
The matter has been set down for a directions hearing on 14 March 2013 in the Federal Court, Brisbane.