Effective today, AFTA have released the new ‘Advertising Guidelines for ATAS Participants’. Approved by the AFTA Board, the guidelines now form part of the mandatory requirement for ATAS accreditation. An amnesty period of 3 months applies for ATAS accredited members to implement any required changes to their business. AFTA will conduct a number of webinars on the topic for those who want to know more.
ATAS Members can register for the webinars by clicking here.
Purpose
A business who advertises must comply with the legislative rules set out in the Australian Consumer Law. This is regulated by the Australian Competition and Consumer Commission (ACCC). Much of the content of the guidelines is extracted from publications and the website of the ACCC and seeks to highlight those obligations that affect the travel industry. These obligations have always formed part of the Eligibility Criteria for ATAS accreditation.
What’s Different
In addition to the guidance set by the ACCC, AFTA have clarified two specific areas affecting the travel industry. These two clarifications clarify the standard required for ATAS accreditation and by doing so, seeks to protect ATAS accredited entities from ACCC enforcement and legal action.
KEY HIGHLIGHTS
1. Two-price comparison
The use of the words “typically” and “valued at” in advertising is deemed to be a two price comparison and the principles of two-price comparative advertising are to apply.
Advertisers need to retain records and be able to substantiate the offer whether that be to the ATAS Compliance Manager or the ACCC. This includes:
Records of how long the product was offered for sale at the “was” price (or typically or valued at);
What other prices were offered during that period; and
How many sales were made at the “was” or “typically or valued at” price and how many sales were made at other prices.
2. Component Pricing
When advertising prices to customers, advertisers should state the total price. If you promote a price that is only part of the total price of goods or services, you must also include the total price (as a single figure) at least as prominently as the part price. Components you are required to include are:
A tax, duty, fee, levy or charge payable by the consumer for the supply (and use) of the travel;
Resort fees;
Mandatory gratuities; and
Direct payments required to a 3rd party operator.
The advertising guidelines are available on the AFTA website here. The ACCC Website also has a wealth of information available if you require more information.
Any member questions or feedback can be directed to Naomi Menon Head of Compliance and Operations at AFTA at naomi@afta.com.au
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