The Australian Competition and Consumer Commission has warned businesses that their pricing must be clear and accurate, after a discount camper rental company was fined $26,400 for misleading advertising targeted at the price-conscious backpacker and budget tourist market.
Juicy Love Pty Ltd, trading as Wicked Campers, paid four infringement notices totalling $26,400 to the ACCC for advertisements on its website and in a national backpacker magazine between February and August 2011 that failed to specify the total price payable for campervans, and failed to disclose certain mandatory fees and charges.
ACCC chairman Rod Sims warns traders risk ACCC action “if they advertise part of the price of goods or services without specifying the total single price payable or fail to adequately disclose the existence of mandatory fees or charges.”
Of particular note was the target audience for the ads: backpackers and budget tourists. These tourists “are often price-sensitive” and “could have difficulty understanding complicated price arrangements in English,” the ACCC says.
“If information concerning price is not clear, consumers can be misled into thinking goods or services are cheaper than they actually are,” Sims says. “This type of conduct not only harms consumers, but other businesses that do the right thing.”
Wicked Campers offers cheap campervans across Australia and calls its service “the best and most affordable way to see Australia”.
“Each budget camper comes with a unique paint job, comfy bed, kitchen and loads of storage space,” the company says on its website.
This is not the first time Wicked Campers has attracted the attention of regulators; according to APNZ news service, there have been several complaints to New Zealand’s Advertising Standards Authority.
The most recent complaint centred on an ad featuring an image of a mountain and a person inhaling white powder with the words “Wicked 100% pure New Zealand”. After the complaint was made – namely, that the ad linked New Zealand to cocaine use – Wicked withdrew its ad.
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