Newsroom

Glasgow holiday club stops misleading claims

213/04    20 December 2004

Glasgow-based holiday club Platinum Travel has agreed to stop making misleading claims following action by Glasgow Trading Standards Unit with the support of the OFT.

Platinum Travel.com Ltd and the company's director Paul Sutherland, have agreed that neither he, the company nor its agents will, make misleading claims that membership of the club would mean consumers could book discount holidays, when such discounts were not actually guaranteed; that booking through the club would lead to significant savings on travel agent prices when this was not guaranteed; that consumers attending a presentation would get a free item or service when this was available only if an administration fee was paid; and that accommodation booked through Platinum was all or predominantly luxury or five star, when this was not the case. The company has also agreed to provide consumers with their right to cancel contracts that were signed off business premises.

Breach of the undertakings could lead to court action.

John Vickers, OFT Chairman, said:

'It is unacceptable to make misleading claims to coax people to sign up to holiday club membership and to deny their cancellation rights.'

Councillor David Stevenson, Convener of Glasgow City Council's Environmental Protection Services, said:

'We had taken a number of complaints about this company. People sign up for holiday deals because they want to enjoy themselves. It's not very enjoyable to lose your consumer rights. I'm glad Platinum Travel has signed a commitment to treat its customers fairly.'

NOTES

1. In March 2003 the OFT launched a campaign warning consumers about the pit-falls to be wary of when dealing with holiday clubs and their marketers (see press release 30/03).

2. Platinum Travel were approached under Part 8 of the Enterprise Act 2002 in relation to breaches of legislation protecting consumers against misleading advertising (see note 3) and abuses in doorstep selling (see note 4)  Part 8 of the Enterprise Act came into force on 20 June 2003, replacing the consumer provisions of the Fair Trading Act and the Stop Now Regulations. The Enterprise Act improves consumer protection by giving enforcers strengthened powers to obtain court orders against traders that breach a range of consumer legislation; controlling activities such as misleading advertising, misleading price indications, lotteries, sale of goods and services, underage sales, estate agency, misleading health claims, trade descriptions, mock auctions, timeshare, unfair terms in consumer contracts, doorstep selling, distance selling, package travel and consumer credit. 

3. The Control of Misleading Advertisements Regulations 1988 (as amended) came into force on 20 June 1988 implementing an EC Directive on misleading advertising. The Regulations aim to protect the interests of consumers and businesses from misleading advertising – or advertisements that make prohibited comparisons.

4. The Consumer Protection (Cancellation of Contracts concluded away from Business Premises) Regulations 1987 as amended, commonly called the Doorstep Selling Regulations, provide that if consumers enter into an agreement to buy goods or services for more than £35 during an unsolicited home visit, they are entitled to cancel that contract within seven days.  The protection applies where contracts are signed during unsolicited visits by traders to the consumer's or another person's workplace or during excursions organised by traders away from their business premises. 

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