Tanaiste leads the charge in eliminating sneaky fees
Sunday August 24 2008
The multi-million industry of sneaky back-door booking fees applied by airlines and ticket agents is to become a thing of the past as the Government seeks to end the practice.
New plans being drawn up by Tanaiste Mary Coughlan, and seen by the Sunday Independent, are aimed at closing the current loophole in the legislation, and legally obliging retailers to inform consumers of all their charges.
But this change in the Consumer Act is only the first step in a process which will eventually make charging for using one method of payment over another illegal.
At present, while it is the practice in certain industries to inform consumers of additional levies -- such as credit card charges or booking fees -- there is no obligation under Irish law to do so. This new amendment will make it compulsory.
In a welcome move for the consumer, the plans being drafted will be come into force as amendments to the Consumer Protection Act, and will oblige traders to include details of such extra charges in all prices quoted in their advertisements and promotional material.
The sneaky add-ons are a multi-million money spinner for airlines and ticket agents.
The Minister is also determined to end the practice of penalising consumers for paying for tickets or other goods and services with their credit cards. Previous attempts to introduce laws in this area were deemed incompatible with EU law and had to be abandoned.
The Sunday Independent understands that Ms Coughlan wants the surcharge prohibition issue to be addressed in Ireland's implementation of the Payment Services Directive next year, and, until then, wants the traders to be upfront about what they are doing.
While the airlines and the ticket agents are the main focus of the new plans, the move is also aimed at preventing local shopkeepers and newsagents applying add-on charges when customers pay with credit or laser cards.
Another key aspect of the plans is the ending of the practice of multiple booking fees being applied to single transactions (ie a fee being charged for every ticket bought), which has been of much concern to the opposition and consumer advocacy groups.
Fine Gael said yesterday that it welcomed the long overdue introduction, but added that the Government's record on protecting consumer rights was laughable.
Consumer groups this weekend also said the measure was long overdue and that it was an important step in recognising consumer rights.
"We are happy that these sneaky back-door charges will now have to be upfront, and also we are hoping that they can be eradicated.
"It is not beyond the realms of fairness for people to know what they are paying. If something says it costs €25, it should be €25 -- not €50, or €75, or €100."
- DANIEL McCONNELL EXCLUSIVE
