Hotelcheque Pty Limited - s.87B undertaking

Hotelcheque Pty Limited offered for sale a product consisting of a book of hotel accommodation vouchers, each voucher entitling the purchaser to hotel accommodation for two people at the rate of approximately $5 per person per night twin share.

The product was advertised in television "editorials" and a radio advertisement. The Commission was concerned that the advertisements failed to adequately inform the audience of the condition that the purchaser and their companion must also buy breakfast and dinner at the hotel in order to qualify for the discounted room rate. This further amount would have been on average $50.50 per person per day for breakfast and dinner.

Hotelcheque provided Undertakings to:

• cease the offending conduct;
• offer full refunds to all affected purchasers;
• publish a corrective advertisement; and for
• company management and staff to undertake a trade practices compliance program.