Sharechat Logo

Air NZ subsidiary fined $4,000 for breaching Act

By Phil Boeyen, ShareChat Business News Editor

Monday 30th October 2000

Text too small?
Air New Zealand subsidiary, Freedom Air, has admitted it breached the Fair Trading Act over advertising airfares to Australia.

The Dunedin District Court has fined South Pacific Air Charters Limited, which is part of the Air New Zealand group and trades as Freedom Air International, $4,000 for making false or misleading claims about the prices of its "Christmas airfare sale".

The Commerce Commission, which prosecuted the charter airline, says ads in the Southland Times and the Otago Daily Times offered return airfares from Dunedin to Sydney or Brisbane for from $449.

It also says a banner in the ads offered another $100 off as part of a Christmas sale.

However Commerce Commission chairman, John Belgrave, says there were no fares available during that period at $449, let alone any at $100 off that price.

While fine print at the bottom of the advertisements qualified the offer, Mr Belgrave says consumers must be able to rely on the overall impression created by advertising, and all important terms and conditions must be accurately and clearly explained.

"All advertisers should consider their use of small print very carefully. If the message in small print is important, then why is it in small print?"

"If the style of advertising does not allow that important message to be made clear, then the style should be changed."

"In this case, Freedom Air's message was not accurate enough, was false or misleading and has led to a conviction, fine and the associated bad publicity."

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Air NZ deputy warns against Qantas cash
Air NZ loses momentum in November
One Air NZ share by Christmas
Air NZ investors have little choice - report
Star Alliance pulls together
Wrightson chairman to steer Air NZ
Tourism body gets $2 million shot in the arm
Free flights cost more
More cash promised as Air NZ share price settled
Air NZ agrees to sell Ansett flights

IRG See IRG research reports