ACM orders travel auction website Reizendeal to provide clearer information
The Netherlands Authority for Consumers and Markets (ACM) has ordered travel website reizendeals.nl to inform consumers more clearly about its offers from now on. Reizendeal has already adjusted its information. Reizendeal sells package tours with a surprise element through an auction system under time pressure. Both Dutch and Belgian consumers filed complaints with ACM about the extra costs that were involved. In addition, it was unclear to consumers that, if they had placed the winning bid, they were stuck with that trip. Some consumers assumed that they were still in the bidding process, and were able to decline the trip. They wanted to do so because the price that they had to pay for the trip turned out to be much higher than the bid they had placed.
Under the rules that protect consumers, Reizendeal is required to include all additional costs of the trip in the price, and to present the total price of the trip before consumers definitively place a bid. Since the trips that are offered are meant for two people, the total price for two people must be presented. Also, Reizendeal must adjust the bid button, so that it is clear to consumers that they have to pay if they win the auction. Reizendeal had to implement these changes before 20 November 2024. If it had failed to do so (or failed to do so sufficiently), it would have had to pay a periodic penalty payment of 8,000 euros per week with a maximum of 80,000 euros. ACM imposed the order subject to periodic penalty payments on 8 October 2024. Reizendeal subsequently made changes to the website. ACM then checked the website again. This follow-up check revealed that Reizendeal has already implemented the imposed measures to adjust its website.
Manon Leijten, Member of the Board of ACM, adds: “Travel operators need to be clear about their offers and about what it costs, even if it’s a surprise trip offered through an auction system. You must know beforehand what price you agree to. Our advice to consumers, especially when confronted with offers under time pressure: only do so if the offer is to your liking and if all costs are known in advance. That is why we ordered Reizendeal to clarify its information.”
Clear information when bidding on surprise trips
Although it is about a surprise trip, the most important information on which consumers base their purchases must be presented beforehand, especially since an auction system is involved with a countdown timer, and consumers themselves determine the prices that they wish to pay through their bids. As their name suggests, surprise trips often involve elements that are not known in advance such as the destination, the accommodation, and the airport of departure and arrival.
In any case, it must be clear to the individual placing a bid that the price that is presented is for two people, because, by default, trips are offered for two people. ACM demands that, going forward, the total price must involve the price for two people including all costs that are unavoidable. This amount must be presented before consumers place their bids. This prevents consumers from finding out afterwards what the actual (and higher) price is that they need to pay.
Risks of surprise trips
ACM sees that there is great interest in surprise trips. At the same time, there are risks involved when booking surprise trips. The surprise element can turn out to be better than expected, but it can also be worse than expected. Moreover, consumers book the trips using an auction system and under time pressure. Their bids are placed while a timer is counting down. In that way, consumers are put under pressure to make a decision quickly. If, for example, not all mandatory costs are included in the total price, people make a decision under time pressure without knowing all relevant information. In addition, consumers must pay attention, because, on top of their bids, extra costs may be added for extra options. As a result, the ‘starting at’-price may seem more appealing than it ultimately is. Consumers can continue to file reports with ACM’s consumer information portal ACM ConsuWijzer.
Guidelines on the protection of the online consumer
ACM has drawn up Guidelines on the protection of the online consumer. These guidelines help businesses comply with the rules that protect consumers against online misleading practices. One of these rules is avoiding so-called dark patterns. Dark patterns are technical and behavior-influencing techniques, as a result of which consumers are persuaded to make purchases that are not to their benefit. Examples of dark patterns include countdown timers, but also the design of websites. In addition, pre-ticked checkboxes are not always in the interest of consumers either.