Travel agent found to have misled consumers with “from” price claims

The question

How can advertisers avoid misleading consumers when using “from” price claims?

The key takeaway

When making “from” price claims, all non-optional fees and costs that will apply to all or most buyers must be included in the price quoted, even where the advertiser has no control over such fees or costs. If the availability of the product or service is limited or the prices are subject to change, this must be explicitly stated in the ad. If prices cannot be updated in real time, the ad must also explicitly state when the prices were last checked.

The background

Trav Expert Ltd t/a Travel Crew (Travel Crew), a retailer of flights and holidays, sold flights as an agent through its website www.travelcrew.co.uk. The website had a search function, enabling consumers to look up flights according to date and destination, the use of which would present consumers with a “from” starting price for the flight.

A complainant challenged whether the price listed at the booking stage for a flight from London to Buenos Aires was misleading, as the “from” price quoted when the consumer initially searched for the flight on the website had been lower.

In response to the complaint, Travel Crew argued that:

• the flight prices listed on its website did not update in real time
• it had used the wording “from” on the ad to indicate that the price advertised was a starting price for flights on that route but was subject to availability, which “changed rapidly” and so may not be the price available when a customer attempted to book
• its terms and conditions stated that the prices advertised were only indicative and could change before booking was complete, and
• the advertised price included taxes, but additional fees and surcharges might also apply depending on the airline and flight.

The development

 The Advertising Standards Authority (ASA) upheld the complaint. While the ASA acknowledged that Travel Crew was an agent and did not provide flights directly itself, it found that because Travel Crew had not explicitly stated in the ad that availability was limited and that prices could change, “consumers would expect to have a reasonable chance of purchasing the flights at the prices advertised”. It was not enough for Travel Crew to merely state in the ad that the price was a starting “from” price. Further, Travel Crew did not provide evidence to show that the prices advertised were genuine, and no information had been provided in the ad as to when the advertised prices were last checked. Therefore, consumers would have no way of judging the accuracy of the price. It was not sufficient that such statements and information about pricing and availability were provided in Travel Crew’s terms and conditions, as these were located on a separate page to the ad.

In response to Travel Crew’s claim regarding additional fees, the ASA emphasised the requirement under CAP Code rule 3.18 that quoted prices must include non-optional taxes, duties, fees and charges that apply to all or most buyers. Therefore, Travel Crew should have included in the advertised price all non-optional fees relevant to each airline and flight. Again, it was not sufficient for such information to be stated on a separate page. Travel Crew was therefore found to have misled consumers.

Why is this important?

The decision highlights the importance of price transparency in all ads, but particularly in the travel sector where prices regularly fluctuate. The ASA is keen to ensure that consumers receive more accurate information regarding flight prices, prior to the booking stage. In a similar vein, the Digital Markets, Competition and Consumers Act 2024 (DMCCA) adds hidden fees and “drip pricing” to the list of commercial practices prohibited in all circumstances. For more on this, see our previous Snapshot. For travel agents, it will often be the case that additional airline fees and costs apply to a product or service, over which the travel agent has no control. According to this decision, such businesses will be required to clearly state in their quoted prices to consumers the exact figures of any additional fees and costs for each flight that the agent offers.

Any practical tips?

All advertisers promoting goods or services with regularly fluctuating prices should consider the CAP guidelines on the use of qualifications to ensure any limitations or relevant information in relation to the price are clearly communicated to the consumer in the promotional material itself. It is not enough for advertisers to rely on their separately-located terms and conditions. Additionally, where automatic price updates are not in place, advertisers must ensure that the ad clearly displays the date on which the price was last checked.

Winter 2024