No fee-free payment options provided

[Mattg]

I'm currently booking a Qantas classic reward flight, and having chosen the carbon offset option there are no fee-free payment options available for paying the taxes and carrier charges.



The same thing happened recently when I booked a reward flight with Qantas over the phone. I couldn't book online, and the only option to pay over the phone was credit card - which attracted a payment fee.

Are airlines allowed to advertise a price when it's impossible to book for that amount?

 

[Himeno]

Are airlines allowed to advertise a price when it's impossible to book for that amount?

No. They are required to offer an option (that works) that avoids payment fees, or not charge fees.

 

[Mattg]

No. They are required to offer an option (that works) that avoids payment fees, or not charge fees.

Which begs the question... why don't they do that?

 

[oz_mark]

Which begs the question... why don't they do that?

I don't believe there is anything in the law that requires it. Just that the ascertainable total is displayed. As there are options with two different fees, it falls through some legal cracks.

 

[harvyk]

I don't believe there is anything in the law that requires it. Just that the ascertainable total is displayed. As there are options with two different fees, it falls through some legal cracks.

The "truth in pricing" laws made it illegal to offer a good and / or service at a price below which it is available.
There is some information about that here -> Displaying prices

Basically they need to be upfront as to the total minimum cost which a person can purchase a product for. If there is non-optional component (such as a booking or CC fee which can not be skipped) then that must be shown in the total price.

They can say the price is $100, and the booking fee is $5 therefore the total cost is $105 (provided $105 is the most prominent price), and they are even then permitted to sell two of the item for $205 if the booking fee is not attached to the second item. But again, the smallest price displayed must be the "drive away no more to pay" price.

(before anyone jumps on me about it, there is an exception for cafe's and restaurants for weekend / public holiday surcharges, but even then there are rules which must be followed).

 

[oz_mark]

Basically they need to be upfront as to the total minimum cost which a person can purchase a product for. If there is non-optional component (such as a booking or CC fee which can not be skipped) then that must be shown in the total price.

The crack in the rules in this case is that until they have elected which option they are going to pay by, they can get away with it.

 

[harvyk]

The crack in the rules in this case is that until they have elected which option they are going to pay by, they can get away with it.

They are required to quote an up-front price which is the minimum price you have to pay to get the good and / or service. So if Debit Card adds 5% and Credit Card adds 10% they are required to include the debit card price as a minimum. Which means that for a $100 item plus booking fee they are required to show $105 as the most obvious price, even though the actual price could be $110. They are allowed to say this is a $100 item with a $5 booking fee, provided the price of $105 is the most obvious on the page. No loopholes there.

This is why places which typically charge a booking fee (such as a event ticketing) are so quick to include the booking fee as the total price and then provide discounts for multiple tickets purchased at the same time.

 

[oz_mark]

They are required to quote an up-front price which is the minimum price you have to pay to get the good and / or service. So if Debit Card adds 5% and Credit Card adds 10% they are required to include the debit card price as a minimum. Which means that for a $100 item plus booking fee they are required to show $105 as the most obvious price, even though the actual price could be $110. They are allowed to say this is a $100 item with a $5 booking fee, provided the price of $105 is the most obvious on the page. No loopholes there.

It's different to the advice I've been given. If a debit card is 5% and a credit card is 10% you clearly disclose the two fees and add it on when you know which it is.

Guess we need to lawyer up, get a court ruling and see who has been given the best advice

 

[Mattg]

It's different to the advice I've been given. If a debit card is 5% and a credit card is 10% you clearly disclose the two fees and add it on when you know which it is.

Guess we need to lawyer up, get a court ruling and see who has been given the best advice

I wouldn't say that Qantas "clearly discloses" the fees anyway. There is no mention of what the booking fees are until you've already entered your credit card number.

 

[oz_mark]

I wouldn't say that Qantas "clearly discloses" the fees anyway. There is no mention of what the booking fees are until you've already entered your credit card number.

That does appear to be a problem in this instance.