Written answers

Tuesday, 27 November 2012

Department of Transport, Tourism and Sport

Tourism Industry

Photo of Tony McLoughlinTony McLoughlin (Sligo-North Leitrim, Fine Gael)
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To ask the Minister for Transport, Tourism and Sport if he will meet with car hire companies prior to the 2013 tourist season and the Gathering to ensure that they sign up to a particular code of practice in relation to charges to ensure that all such charges are up front and are fair to ensure tourists get a fair deal. [52250/12]

Photo of Tony McLoughlinTony McLoughlin (Sligo-North Leitrim, Fine Gael)
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To ask the Minister for Transport, Tourism and Sport the steps he is taking to advise tourists coming here of some hidden charges that car hire companies add on to customers in relation to insurance which many of them are not aware of when they make their booking from overseas. [52249/12]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I propose to take Questions Nos. 110 and 120 together.

These questions relate to practices relating to car rental and the Deputy's concerns about practices in that industry. Firstly, I must state that I have no regulatory function in relation to the car rental industry.

The National Consumer Agency, which comes within the remit of the Minister for Jobs, Enterprise and Innovation, is responsible for the enforcement of the Consumer Protection Act 2007. That Act provides for the regulation of quotes or other communications by traders to consumers relating to the price of goods and services, including car rentals.  Consumers who have been subject to misleading or unfair practices by car rental companies may make a complaint to the Agency.    

I am also informed by the NCA that under Article 22 of Directive 2011/83/EU on Consumer Rights, a trader must seek the express consent of the consumer to any extra payment in addition to the payment agreed upon for the trader’s main contractual obligation. If this express consent is not obtained but has been inferred by using default options which the consumer is required to reject in order to avoid the additional payment, then the consumer shall be entitled to reimbursement of this payment.  While Member States are not required to transpose the Directive until December 2013, the Minister for Jobs, Enterprise and Innovation intends, subject to legal advice, to enact Regulations giving effect to Article 22 in early 2013. 

Article 6 of the Directive will require car hire companies and other traders, before the consumer is bound by an online or other distance contract, to provide information in a clear and comprehensible manner about the ‘total price of the goods or services inclusive of taxes’ and, where applicable, about ‘any other costs’. If the trader has not complied with the Article’s provisions on such additional costs, the consumer will not be required to bear those costs.  

The transposition of the Directive will greatly assist tourists travelling for The Gathering in obtaining clarity in relation to their online car hire bookings.

Furthermore, the two tourism agencies under the aegis of my Department are aware of this issue and have recently updated their websites to help make tourists aware of issues pertaining to car rental, and to help them avoid unnecessary charges.

 

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