Issue Date:  -  Tuesday, 14 January 2003

Bayswater Hire Cars prosecuted

The hire car company was found guilty late yesterday of seven charges of misleading advertising in respect of prices.

The Department of Consumer and Employment Protection prosecuted Bayswater Car Rental Pty Ltd and its proprietor Arnoldus Kluck of South Perth, following complaints from consumers alleging discrepancies in the company's advertised prices and the actual prices charged for the hiring of vehicles.

The company ran a series of newspaper advertisements including the promoting of hire cars for $14 per day when in fact extra charges including those for mandatory insurance made the price up to $26 per day.

Magistrate Barbara Lane found that insurance excess was a mandatory charge in order to hire a vehicle. This was not shown as being mandatory.

"Consumers have to be confident that advertisements are accurate and honest. Bait advertising which lures a consumer with a price or product which is not intended to be provided will not be tolerated by the Department", Consumer Protection Commissioner Patrick Walker said.

"We pursued this matter with vigour as our enquiries indicated that the company felt it acceptable to state a low price and then add on various fees for air-conditioning, insurance excess and seasonal surcharges. Over time this could be very costly to an unsuspecting consumer.

"Another concern we had was that whilst certain prices were quoted for non air-conditioned vehicles it was discovered that the company did not actually hire out vehicles without air-conditioning at one stage.

"Consumers should read advertisements very carefully and ensure they are actually getting what is promised before committing to any contract. We are always eager to hear from consumers if they believe they have been the victim of false or misleading activities by traders", Mr. Walker said.

Sentencing will be handed down on Thursday 16th January 2003. Consumer Protection can be contacted on telephone number 1300 30 40 54.