THE FAIR Trading Commission (FTC) has laid down new rules dictating how airline companies operating out of Jamaica should advertise the price of airline tickets.
Acting on complaints that airline passengers were being charged up to 53 per cent more than the advertised price for an airline ticket at the time of purchase, the FTC said in an advisory that all airline advertisements are now required to reflect as accurately as possible the total cost of a ticket.
The directive took effect March 1.
The FTC cited an example in which an airline ticket was advertised for US$194, but after the requisite taxes, fees and charges were applied, the actual cost was US$297.
"Consumers were largely unprepared for such levels of increase over and above the advertised price of a ticket, and were effectively being misled as to the ultimate cost of an airline ticket," the agency said.
In complying with the new regulations, all "advertisements will indicate either the range of the percentage or dollar figure increase; or the approximate amount of taxes, charges and or fees which will be added to the advertised price of an airline ticket."
Under the Fair Competition Act, providers of goods and services are prohibited from making representations to the public that are misleading in a material respect.
Barbara Lee, executive director of the FTC, in an interview with The Gleaner yesterday, said all airlines operating out of the country had become accustomed to advertising the airline ticket price without the applicable taxes.
Airline companies that breach the new regulation are liable to pay fines ranging up to $5 million under the Fair Competition Act.
