Is Qantas breaching TPA?

[aus_flyer]

I've been reading about the Component Pricing laws (contained in Trade Practices Act) which, although introduced some time ago, have not been subject to an amnesty period since 1 July 2010.​

Reading about the examples given about credit card surcharges got me thinking... is Qantas (and other airlines) in breach?​

Looking at the explanatory memorandum...

Example 6.3
Where a consumer can only purchase a service by using a credit card, and a compulsory surcharge is imposed for the use of a credit card, that charge should be included in the single price; but​

Example 6.4
Where a consumer can purchase a service through means other than a credit card, and those other means do not attract a compulsory surcharge, the credit card surcharge does not need to be included in the single price.​

The $7.70 credit card surcharge for domestic bookings would not normally be a problem as Bpay is offered as a free alternative. But, if a booking is made less than 7 days before departure, Bpay is not an option. Therefore, as there is no way to avoid the surcharge, is this in breach?​

Would be interested in hearing other views!​

 

[Dave Noble]

Qantas and Tiger Bookings within 7 days can be paid for with Debit mastercard with no surcharge
Jetstar allows payment via Internet Banking with no surcharge
Rex doesn't seem to have a credit card surcharge
Virgin Blue, however, seem not to have any way to avoid paying a surcharge, either $3.50 for a ccard or $10.95 for internet banking so would seem like a possible issue there

Other than DJ, the main airlines seem to be covered imo

Dave

 

[aus_flyer]

I stand corrected.

Thanks Dave.

 

[Dave Noble]

It would be interesting to know whether DJ's pricing conforms with the TPA given that there seems to be a choice of credit card surcharge or internet surcharge but no way of paying otherwise

 

[anat0l]

What does the TPA say if you offer different means of payment (perhaps including credit card) and all of them attract a surcharge?

Also, I guess TPA excludes specific kinds of "currency" which are not common legal tender, e.g. airline vouchers or reusing a ticket which has been deferred to credit.

 

[anat0l]

Virgin Blue, however, seem not to have any way to avoid paying a surcharge, either $3.50 for a ccard or $10.95 for internet banking so would seem like a possible issue there

Other than DJ, the main airlines seem to be covered imo

Dave

Dave, when you did a dummy with DJ and chose Internet Banking, did you remember to remove the optional (but default selected) Travel Insurance? That is worth $10.95.

If you check the bill there should be no charge for Internet Banking (apart from whatever your bank will charge you in fees).

 

[oz_mark]

Another thing to bear in mind about the Qantas surcharge is that it is applied per passenger per booking. Given that the $7.70 could be spread across 1 or more individually priced sectors, Qantas cannot up front add anything on to the individual sectors. Given that, even if a free option was not available, they may not be in breach of the TPA.

 

[ChrisBNE]

Virgin Blue, however, seem not to have any way to avoid paying a surcharge, either $3.50 for a ccard or $10.95 for internet banking so would seem like a possible issue there

Other than DJ, the main airlines seem to be covered imo

Dave

Rex charge a fee for credit card - it is charged seperately to the main airfare. I believe it's around 1.4% for Visa/Mastercard. Higher for AX/DC

 

[serfty]

Another thing to bear in mind about the Qantas surcharge is that it is applied per passenger per booking. Given that the $7.70 could be spread across 1 or more individually priced sectors, Qantas cannot up front add anything on to the individual sectors. Given that, even if a free option was not available, they may not be in breach of the TPA.

I guess tha in such a situation and since they generally advertise the prices for one-way segments, they would need to promote the cost inclusive of the CC fee (if there were no other option).

 

[oz_mark]

I guess tha in such a situation and since they generally advertise the prices for one-way segments, they would need to promote the cost inclusive of the CC fee (if there were no other option).

But what is the cost inclusive price?

If you book a one way fare then you add $7.70 on
If you book a return fare then you add $3.85 onto each.

There is no way, at making the price representation, that Qantas can know how many sectors a booking will cover.

 

[esquire]

Rex charge a fee for credit card - it is charged seperately to the main airfare. I believe it's around 1.4% for Visa/Mastercard. Higher for AX/DC

Yes noticed this - and it appears there is no other option with Rex - credit card ONLY! 1.76% V/MC; 2.86% Diners; and for some reason 3.96% for AMEX

 

[serfty]

Since the fee it "per booking", such would have to be worst case.

So quote for the "one way" fare.

e.g. The current $99 lowest fare MEL-SYD would need to be advertised as "$107 one-way".

 

[anat0l]

Since the fee it "per booking", such would have to be worst case.

So quote for the "one way" fare.

e.g. The current $99 lowest fare MEL-SYD would need to be advertised as "$107 one-way".

What about multi-sector or open jaw itineraries? Such as BNE-SYD/MEL-BNE, or BNE-SYD-MEL (two flights, not a connector), or... BNE-MEL-ADL-SYD-CBR-SYD-ADL-MEL-BNE?

There are many one-way and return fares constituting the above itineraries, but all of them get charged the same fee of $7.70.*

So perhaps you could do what you suggest but then you tack a rider note along that mentions that for particular itineraries you would not pay that much. Or you stay with what you have now and leave it at that. Perhaps QF could have an informative diagram or something which tells people how QF charges the credit card fee.

The TPA is designed to protect consumers but in some cases I think it is designed to allow trading to accommodate more idiots. (And, as they say, in a competition between designing better idiot-proof systems and the universe designing a better idiot, the universe is winning.)

* In saying this, some travel websites make the mistake of tacking a credit card surcharge for every single sector, which is obviously incorrect.

 

[drron]

Rex charge a fee for credit card - it is charged seperately to the main airfare. I believe it's around 1.4% for Visa/Mastercard. Higher for AX/DC

Yes but this is a credit card surcharge not a fixed credit card fee.Surcharges are perfectly legal.

 

[oz_mark]

Since the fee it "per booking", such would have to be worst case.

So quote for the "one way" fare.

e.g. The current $99 lowest fare MEL-SYD would need to be advertised as "$107 one-way".

Yes, but from the perspective of the TPA the individual sector amounts cannot be determined at the point the price representation is made. Thus, there is no need to include them.

 

[AdMEL]

My take on this is that where there is no other payment method, a surcharge of the structure imposed by Qantas would be a breach of the TPA, otherwise what's to stop other airlines (and any other retailer) imposing a complicated surcharge such that it can't be calculated up front, to avoid having to disclose it upfront!

It's interesting that on the JQ mobile website, the credit crad fee is included upfront by default. I was going to say that JQ don't have any payment method to avoid the fee, but they do - payment using their credit card.

I've learnt something from this though - I didn't know you could avoid the Qantas surcharge by paying with a Debit Mastercard (I knew you could with Tiger) and I didn't know you could avoid the Virgin surcharge by paying by electronic funds transfer - neither of these options are obvious when booking tickets on their respective websites.

 

[oz_mark]

My take on this is that where there is no other payment method, a surcharge of the structure imposed by Qantas would be a breach of the TPA, otherwise what's to stop other airlines (and any other retailer) imposing a complicated surcharge such that it can't be calculated up front, to avoid having to disclose it upfront!

I don't think so. One reason a number of restaurants moved from a percentage surcharge on Sundays and Public Holidays to a flat rate charge was to avoid the need to reprint menus for Sundays that made the correct price representation.

As a percentage fee, you would need to include it in the price. As a flat $10, they don't know how many items it will be spread across, hence no need to include - just a statement that it applies.

 

[AdMEL]

I don't think so. One reason a number of restaurants moved from a percentage surcharge on Sundays and Public Holidays to a flat rate charge was to avoid the need to reprint menus for Sundays that made the correct price representation.

As a percentage fee, you would need to include it in the price. As a flat $10, they don't know how many items it will be spread across, hence no need to include - just a statement that it applies.

I haven't seen that in any restaurants. In fact, I haven't seen a surcharge in manny restaurants in Melbourne at all, of any type! Would you care to name a few?

Assuming that is the case, that's a major flaw in the TPA!

 

[oz_mark]

Less common in Melbourne than other cities, but one example is Meat and Wine Company on Southbank $5 surcharge on public holidays

 

[cove]

I think Rockpool charged us $16 extra each for a lunch as a surcharge.
Fortunately the lunch was excellent.
Public holiday surcharges like that are supposed to be handled by reprinting the menu pricing but when you are hungry does it really matter?