OFT warns travel companies over card surcharges
The Office of Fair Trading (OFT) has warned travel companies they face action under consumer protection laws if they do not make card charges clear when customers make purchases online.
Responding to a super complaint from consumer organisation Which?, the OFT found that airline, ferry and rail passengers often have to click through several pages of a web-based booking process before they are informed of card surcharges.
That practice has now been outlawed, with the OFT urging all companies to make all surcharges clear at the beginning of every transaction or risk punishment under the law.
"We will take enforcement action against any businesses that do not respond to today's announcement and instead continue to use misleading surcharging practices," said OFT Goods and Consumer Group senior director Cavendish Elithorn.
Following the announcement, Which? chief executive Peter Vicary-Smith hailed the ruling as a "victory for consumers".
"We want to see the measures recommended by the OFT put in place as quickly as possible and finally put an end to the practice of card surcharging," he said.
"While we understand that some of the regulatory changes will take some time, we urge the OFT to take steps immediately to ensure that consumers know the true cost of their purchases up front."
The OFT also called for surcharges on debit card purchases to be scrapped, but admitted they should be allowed to continue for "more costly" credit cards.
"We believe there is also a strong case for a change in the law so that the cost of using a debit card, the almost universal payment method for today's online consumers, is always included within the headline price," Mr Elithorn remarked.
Use the Myfinances.co.uk comparison tools to find the best deal on a credit card
- Tags:
- credit card ,
- news ,
- online retail
Comments
Newsletter sign up