FOMCA fully supports the action by the Deputy Minister of Transport on eliminating hidden charges when purchasing air tickets. This pervasive practice of quoting a price, for example RM 1 for ticket price, and then when all the other charges are added, the actual price is way above RM1, must be stopped. Hidden charges must be eliminated, Advertised price must be the actual price consumers pay. Consumers must get the price they are promised. The principle should be “what you see is what you get”. The advertised prices should thus reflect the real price not some misleading promotional price to attract consumers and then hit them with an exorbitant price later.
The Federal Court in Melbourne in 2012 had imposed a penalty of A$ 200,000 against Air Asia Berhad for contravening the single price provision of the Australian Consumer Law. According to the Australian Competition and Consumer Commission (ACCC) website, Air Asia for a period of 10 months did not display on the website some air fair prices inclusive of all taxes, duties, fees and other mandatory charges in a prominent way and as a single figure.
Under Section 48 of the Australian Consumer Law, businesses that choose to advertise a part of the price of a particular product or service must also prominently specify a single total price.FOMCA fully supports and has always been advocating for an all-inclusive pricing. Consumers must have accurate price information so that they can compare prices to get the best value for money.The Ministry of Transport’s courageous action to promote air travellers well-being must be lauded. Accurate price information is crucial for consumer wellbeing.Single pricing is not only relevant for the airline industry but for all industries. In August 2017, the then Minister of Domestic Trade, Cooperatives and Consumerism had announced that amendment had been made to the Price Control and Anti-Profiteering Act, whereby consumers need not pay more than the price displayed, quoted or advertised. He had stated that “the policy would benefit consumers and help them make more informed decisions without worrying about additional costs”. Yet till today, in restaurants and hotels the practice of “hidden charges” continues unabated. The legislation was never implemented.
The culture of pricing ++ must be eliminated. If in the restaurant, the menu states RM 15 for a product, then that is what the consumer should pay. The customer should not need to spend, plus 10% service charge and 6% service tax, resulting in actual payment of RM 17.40, an addition of RM 2.40 or 16% above the advertised price. If there is a partial price of RM 15, then the full prices should also be shown on the menu.
This also includes hotels and all other products and services. Hidden prices should be eliminated. The consumer should have clear knowledge of the actual price, so that he can decide accurately whether he can afford and wants to purchase at that price, or maybe check out other competitor’s prices to see if he can get a better deal.
Malaysia should follow single price policy for all products and services in Malaysia. This would be a significant step towards empowering consumers to get better value for their money. This would be one positive step towards empowering consumers in their efforts to address the increasing cost of living.