All-in airfare prices now the law.
Price must include fees, taxes; any gotchas must also be detailed
The federal government enacted new legislation Tuesday that would force airlines and other air service providers to advertise the all-in price of their airfares, including all taxes and fees, under threat of fines if they fail to do so.
The new regulations will put an end to the common practice of advertising fares in Canada that exclude certain taxes and fees and are often hundreds of dollars less than the actual price paid by consumers.
The new regulations require air service advertisers to display the total price a consumer must pay to fly in all media — online, print, broadcast, billboards — for travel within or originating in Canada, Transport Canada said.
Federal Transport Minister Denis Lebel said the new regulations will ensure consumers know what they’re paying upfront and are not hit with any hidden fees.
Failure to abide by the guidelines could result in fines of up to $25,000 for repeat offenders.
“We are protecting Canadian air travellers by helping them see, clearly and up front, the full cost of air tickets, so they can make informed travel choices,” Lebel said in a statement.
“In addition to benefiting consumers by ensuring transparent advertising, these regulations will promote fair competition between all advertisers.”
Lebel promised last December when they were announced that the amendments to the Air Transport Regulations would be implemented by the end of 2012.
The Canadian Transportation Agency has spent its time since consulting with industry stakeholders, consumer interest groups and the public before drafting the new rules.
Many of the country’s largest carriers, including Air Canada and WestJet Airlines Ltd., have already started to use some form of all-in advertising since the plan was announced.
The minimum level of description that will be required under the new regulations will be the total price, inclusive of all taxes, fees, and charges, that the consumer must pay to fly.
The regulations also require the advertiser to include the point of origin and destination, as well as whether it is a one-way or round-trip fare.
They must also include any limitations to booking or travel availability period and access to a breakdown of the taxes, fees and charges, as well as any optional services offered for a fee, such as checked baggage fees, inflight entertainment or meals.
Violations of the new rules will be monitored and reviewed and any fines will enforced by the CTA, Transport Canada said.