/ 17 September 2007

ASA bans kulula.com advert

A kulula.com email advertisement has been banned because it failed to convey mandatory airport charges in its selling price, the Advertising Standards Authority of South Africa (ASA) said on Monday.

”The selling price must include all necessary costs without which the product cannot be purchased. Where it is impractical to do so the advertiser is obligated to prominently state the consumer’s liability to pay such costs,” said ASA spokesperson Lillian Mlambo.

In the advert, the airline displayed airfares to various destinations but did not communicate the mandatory airport charges that made up a significant percentage of the total selling price.

The Association of South African Travel Agents (Asata) lodged a complaint against the advert on July 9 this year.

In the advert, the word ”sale” was in large letters at the top.

It then stated: ”from R199 one way, excluding airport charges between”. and ”from R299 one way, excluding airport charges between”.

At the bottom, it stated, ”Note: kulula fares are now displayed exclusive of airport charges so that you are aware of the significant escalations in charges at ACSA airports.”

Asata complained that the advertised prices should include airport charges and that it was not impracticable to do so as the charges were specific and prescribed by legislation.

It further complained that the consumer’s liability to pay airport charges was not stated prominently and in a font size not less than half that of the purchase price.

In its response, Kulula said that the email was only sent to subscribers who had given their permission to be contacted and were familiar with the type of email.

It said the advertisement clearly stated, in three separate places, that airport charges were excluded.

It also submitted that airports had their own individual tax rates and it was not possible to list all of these.

”The aim of this is to clearly point out that customers are paying excessive fees for certain airports,” kulula.com was reported as saying in its response.

The ASA ruled that the advertisement must be withdrawn immediately.

It further ruled that the advert may not be used again in its current format.

Kulula.com confirmed it had received notification of the ASA’s ruling. — Sapa