The OFT's investigation was part of an international audit of travel sites carried out by 87 enforcement agencies in 24 countries as part of the International Consumer Protection and Enforcement Network (ICPEN) Sweep. Over 1,000 problem sites were identified worldwide.
The OFT believes that 40% (54 out of 135) of UK-based web sites visited during the search contained potentially misleading claims – although it has not named them.
Claims that are being investigated under the Control of Misleading Advertising Regulations include "hot deals" on a front page which bear no resemblance to the prices of the holiday actually available and ads such as one stating "Australia from £599" when the cheapest price was £891.60.
More than 100 additional potential breaches of consumer legislation were identified under the E-Commerce Regulations, the Unfair Terms in Consumer Contract Regulations, the Package Travel Regulations and the Distance Selling Regulations.
UK-based sites identified as making potentially deceptive, misleading or false claims, or that have breached other consumer laws, are being pursued either by local trading standards or the OFT with a view to taking further action.
John Vickers, OFT Chairman, said:
"The internet is a valuable and expanding resource for consumers and for business. On-line shoppers must have the same protection afforded by the high street, and if traders breach fair trading law, the OFT will pursue them."
The laws involved
- The Unfair Terms in Consumer Contracts Regulations apply to standard contract terms used with consumers in contracts made after 1st July 1995. The Regulations say that a consumer is not bound by a standard term in a contract with a seller or supplier if that term is unfair. They also give the OFT and certain other bodies powers to stop the use of unfair standard terms, if necessary by obtaining a court injunction. Ultimately, only a court can decide whether a term is unfair.
- Under the Control of Misleading Advertisements Regulations 1988, the OFT can apply to the High Court for an injunction preventing the further publication of a misleading advertisement.
- The Package Travel, Package Holidays and Package Tours Regulations 1992 control the sale and performance of packages sold or offered for sale in the UK. They set out what information must be given to the consumer before the contract is concluded (including information to be in brochures) and information that must be given to the consumer before the package starts.
- The Distance Selling Regulations give consumers rights in the area of home shopping. Under the Regulations consumers shopping for goods and services by telephone, mail order, fax, digital television and the internet and other types of distance communication now have the right to clear information, a cooling off period and further protection against fraudulent use of a credit card.
- The E-Commerce Regulations include provisions for the information an online service provider must give a consumer, including discounts and offers in online advertising.