Korean Inbound Tour Operators Council incorporated (KITOCA) - s.87B undertaking

Company or individual details

  • Korean Inbound Tour Operators Council incorporated (KITOCA)

Undertaking

The Korean Inbound Tour Operators Council of Australia (KITOCA) has given an 87B Undertaking to the ACCC after the ACCC became concerned that KITOCA and its members may have agreed that its members would not provide tour services to Korean travel agents and wholesalers, whom KITOCA considered advertised packaged tours below certain minimum retail rates; and sought to arrange for certain duty free stores and Korean restaurants in Australia to not allow entry to tourists on tours conducted by those operators.

KITOCA has provided court enforceable undertakings to the ACCC that it will not seek or procure its members to enter into anticompetitive arrangements for the reason that Korean travel agents have offered for sale packaged tours below a retail price. KITOCA has undertaken that it will not seek to procure its members to enter into arrangementrs as to the wholesale price they will charge Korean travel agents for tour services.

KITOCA will within 14 days of acceptance of the Undertaking, send a letter to each of its members outlining KITOCA's responsibilities in terms of sections 45, 45A and 45(4D) of the Trade Practices Act 1974, and will advise its members that if they did reach any agreements that were likely to breach the Trade Practices Act, then those agreements should be immediately discontinued.

KITOCA has also undertaken to conduct trade practices compliance training for its offices and employees.