Big City Promotions Pty Ltd - s.87B undertaking

Company or individual details

  • Big City Promotions Pty Ltd
    62 131 238652

Undertaking

Between July 2009 and July 2010, Big City Promotions published one page advertisements promoting holiday accommodation and sent those advertisements by facsimile to a large number of businesses.

The advertisements promoted holiday accommodation at the cost of $33.00 per person/per night at a number of hotels in Australia, New Zealand, Bali, Thailand, Europe, USA, Hong Kong, Egypt, India and Fiji.

The advertisements failed to disclose that in order to purchase accommodation at $33.00 per person/per night consumers were required to:

  • attend a resort sales presentation when staying at the accommodation; and
  • pay a $99.00 booking fee.

The advertisements also failed to state a single price payable by consumers for the advertised accommodation, by advertising an accommodation price of $33.00 per person/per night, when the total price for that accommodation, including the $99.00 booking fee, was $297.

The ACCC raised concerns with Big City Promotions that the disclosure failures described above may breach sections 52 and 53C of the Trade Practices Act 1974 (TPA).

Big City Promotions acknowledges that by publishing the advertisements to a large number of businesses with the disclosure failures described above it contravened sections 52 and 53C of the TPA and in response to the ACCC's concerns it:

  • ceased publishing the advertisements; and
  • offered court enforceable undertakings to the ACCC.

The ACCC has accepted court enforceable undertakings from Big City Promotions that it will:

  • ensure that future advertisements include:
  1. a single price payable by consumers, including any fees; and
  2. prominent disclosure of any conditions required to be met by a consumer to qualify for the advertised price;
  • send a letter to all its customers who purchased holiday accommodation between July 2009 and July 2010 offering a refund of the purchase price paid by its customers who at the time of the purchase were misled by the advertisement as to either the total amount payable for the holiday accommodation or the requirement that they attend a sales presentation; and
  • develop and implement a trade practices compliance program to ensure awareness of its responsibilities and obligations under the TPA.

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