One in three customers seeking to book an airline ticket online is being “ripped off, misled or confused”, the European Commission said today.
The commission threatened to take action against airlines and tour operators for what it says are “serious and persistent” consumer problems, including misleading advertising in relation to online ticket sales.
EU Consumer Commissioner Meglena Kuneva today published the mid-term report on an EU wide enforcement investigation into unfair practices and misleading advertising on airline industry websites.
The commissioner revealed that one in three websites surveyed (137 out of 386) had to be followed up with enforcement action over the last seven months for breaches of EU consumer law.
More than 50 per cent of the sites were corrected during that time.
"It is unacceptable that one in three consumers going to book a plane ticket online is being ripped off or mislead and confused,” said Ms Kuneva.
“This report shows there are serious and persistent problems with ticket sales throughout the airline industry as a whole.
“I intend to work with Member States to do everything possible to wrap up this investigation by May 1st next year.
“But these findings send a political signal we cannot ignore. I hope operators have now realised the determination of the Commission to act on behalf of consumers where it is necessary. My message to industry is clear, act now or we will act.”
The commissioner said she needed to see “credible evidence” of improvement to clean up sales and marketing practices within the airline sector by May 1st next year or the commission would be left with “no choice but to intervene”.
According to the survey, misleading pricing is the biggest problem, found in 58 per cent of the sites under investigation.
In 49 per cent of the sites, there were irregularities related to contract terms Problems with non-availability of advertised offers appeared in 15 per cent of the sites.
The commission said the problems exist across the airline industry as a whole, including airlines and tour operators.
It said the distinction between “so-called low fare and traditional airlines is increasingly blurred in practice”.
Of the 79 sites being investigated because of problems of misleading pricing, 44 (56 per cent) are airlines, 27 (34 per cent) are travel agencies/tour operators, and 8 (10 per cent) were other types such as price comparison sites.
The commission said that of the 21 websites sites with problems to do with the availability of offers, 12 (57 per cent) were airlines, six (28 per cent) were travel agencies and three were other types of website.
Of 67 sites being investigated for unfair contract terms, 26 (39 per cent) were airlines, 34 (51 per cent) were travel agencies and seven (10 per cent) were other sites.
Many sites had multiple problems. The 137 websites under investigation represent about 80 companies – including large brand names and lesser known companies, the commission said.
The report includes data from the 13 (out of 16) participating countries which were in a position to provide the results of their enforcement action so far. Ireland is not one of the participating countries.