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Dublin (pte029/03.03.2005/13:30) - Low-budget airline Ryanair http://www.ryanair.com yesterday won what its opponents called "a victory for small print" in a case for internet advertising, when a court decided that it was legal to advertise flight costs without taxes, providing it was made clear. However, the no-frills airline was fined 24,000 pounds after the jurors at Chelmsford crown court concluded that a page of its website, which did not immediately explain that tax would be added, breached consumer protection legislation, the Media Guardian http://www.mediaguardian.co.uk reports.
Ryanair had been prosecuted by Essex county council's trading standards department. The council's lawyers argued that the legal position in relation to internet advertisements should be "the price you see is the price you pay," as it is for newspaper, billboard and television adverts. The budget airline was accused of breaking the Consumer Protection Act by advertising a flight as "London Stansted - Pisa 4.99 pounds one way, excluding tax", because the offer did not immediately and clearly spell out the full cost, which would have been 11.87 pounds, after 1.88 pounds for insurance and 5 pounds for UK air duty had been added. However, the jury disagreed. Instead, the found the Dublin-based company guilty regarding six other website adverts which did not feature the words "excluding tax". Judge Charles Gratwicke fined the firm 4,000 pounds for each charge. However, he did not order Ryanair to pay any costs, so the 32,000 pound cost of bringing the prosecution will have to met bet my the council. Ryanair denied the offences, saying that its policy was to always add the phrase "excluding tax". The words had been missed off the six flight advertisements in error, it said.
According to Mike Hill, head of Essex county council's trading standards department, the council would lobby the government for a change in consumer legislation. "We have tested the law and it has been found wanting," he said. "In newspapers, television and on billboards, companies have to advertise the true cost of goods. If a petrol company advertised a litre of petrol at 25p - excluding tax, it would be illegal. It should be the same with internet advertising for flights," he continued. "We thought that by bringing this prosecution act we would be able to show that the Consumer Protection Act also applies to internet advertising. But the jury's verdict shows that it doesn't, and we will now lobby the government for change. Ryanair advertises in this way because it makes their flights look cheaper," he added.
"Ryanair's internet banner headline advertising - e.g 4.99 pounds exclusive of tax - was not misleading to customers. 98 per cent of our customers book via the internet. We have 30 million customers a year and we have not had a single complaint about our advertising," said Caroline Green, head of consumer services at the airline.
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