The OFT issued a warning to holiday and travel suppliers on 9 February instructing them to include such costs in their advertising by a deadline of 10 May.
In a statement today, the OFT said that the majority of the airlines contacted had agreed to review their pricing practices, with some agreeing to change their pricing to make it more transparent for consumers. It is now reviewing relevant advertising and websites to ensure that compliance is complete.
However, the OFT added that a minority of airlines, which it did not name, had failed to comply and that as a result it would bring enforcement proceedings against them.
‘Markets do not work well if consumers cannot make like-for-like comparisons of prices,’ commented OFT chief executive, John Fingleton.
‘The OFT is committed to ensure that consumers are not misled by advertised prices that bear little relation to actual prices, and that businesses that do provide reliable information to consumers are not disadvantaged.
‘We will enforce the law enthusiastically to ensure that consumer choice and competition are not distorted, and that both consumers and business have confidence in the market.’
The OFT’s enforcement proceedings will not result in any civil or criminal cases; instead businesses will be prosecuted under the 1987 Consumer Protection Act.
The OFT also said ABTA had issued a reminder to its members that its Code of Conduct required them to include all fixed, non-optional costs such as taxes in the basic advertised prices of their holidays. ABTA has told the OFT that it will rigorously enforce the Code against companies that do not comply.
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