Air NZ Fined For Misleading Adverts

June 9, 2006

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National carrier Air New Zealand said on Friday it had agreed to pay a fine of NZD$600,000 (USD$377,500) plus costs of NZD$50,000 to settle a prosecution for misleading advertising.

In November, the airline was found guilty of breaching consumer protection laws under charges laid by the New Zealand Commerce Commission.

Consumers had complained that extra charges were being added to the price of fares advertised between 2001 and 2004, including normal operating costs such as fuel.

Both parties have agreed to the fine and imposition of costs in a joint submission at a hearing in an Auckland court on Friday, the company said in a statement. The Court will decide whether to accept the submission by June 16.

The company said it had since changed its advertising and provided greater clarity on how fares were composed.

(Reuters)