Note: This advice is given by the CAP Executive about non-broadcast advertising. It does not constitute legal advice. It does not bind CAP, CAP advisory panels or the Advertising Standards Authority.
In addition to any pricing legislation that they might have to comply with, the CAP Code requires marketers to include all non-optional taxes and duties imposed on all buyers. In the case of flights, taxes and other costs, such as Air Passenger Duty, fuel supplements and security charges are levied and must be included in the price offered to consumers. Other compulsory charges, such as Security Airline Failure Insurance (SAFI) must also be included (Specialist Holiday Group Ltd, 13 October 2004). The ASA has ruled that, irrespective of how clear the qualification is, quoting a headline price that excludes taxes and duties that are payable when travellers buy their tickets is unacceptable. If marketers want to state inclusive and exclusive prices, greater prominence should be given to the inclusive price.
In February 2004, the ASA ruled that if flights could not be bought without consumers being charged a compulsory credit card or debit card fee the minimum charge should be included in the headline price (British European, 4 February 2004).
Simply put then, marketers must state the full cost to the consumer (although taxes levied abroad and not payable at the time of purchase do not have to be included as long as consumers are told that such charges exist). One marketer, who advertised multiple departure points and multiple destinations, argued that it was impracticable to include all the taxes, duties and supplements because they differed depending on the route chosen. The ASA, however, ruled that the marketer should state the lowest inclusive price for which consumers could travel and pre-fix the claim with the word ‘from’ (BMIbaby.com, 5 November 2003).
Because of the limited shelf-life of the product and the speed with which the market responds to changes in demand, seats on flights to the same destination usually differ in price. If not all flights are available at the quoted fare, marketing communications should state prominently that prices are “from…”. Generally speaking, marketers should be able to show that around 10% of the seats available are offered at the lead-in price (easyJet Airline Co Ltd, 28 January 2004 and British European, 21 January 2004 and 18 August 2004).
Marketers (whether they are in the travel industry or not) who want to offer ‘free’ flights can do so only if consumers do not pay for taxes or charges. CAP recently allowed an airline to describe a promotion as offering ‘free’ flights because the promoters were prepared to absorb the cost of the taxes. That is not common and marketing communications for ‘free’ flights will fall foul of the CAP Code if there are costs to the consumer (British European, 14 April 2004 (complaint 4)). Marketers wanting to describe such promotions should avoid claims that are likely to be interpreted as ‘free’. In June 2004, the ASA upheld a complaint about the use of the word “giveaway” because it considered it was synonymous with ‘free’. Because consumers could not obtain the flights without paying taxes and charges, the ASA considered the implication that the flights were ‘free’ was misleading (MGN Ltd and Ryanair Ltd, 23 June 2004). Similarly, using a weasel, such as “free seats”, if taxes or duties have to be paid, is unacceptable. But claims such as “tax only”, “flights for the cost of the tax” or similar are likely to be acceptable, as are more ambiguous or subjective claims such as “cheap flights”, “bargain fares”, etc.
See Help Note on Travel Marketing and entry on ‘Travel Marketing, Availability’.
Last modified : 27 July 2010