Backpacker travel insurance customers 'should be wary of agents'

The Australian Competition and Consumer Commission (ACCC) has cracked down on three agents specialising in backpacking trips for alleged false advertising.

Wicked Travel, Peter Pan's Adventure Travel and Adventure Travel Bugs were found by the ACCC to have breached a new pricing law by publishing adverts containing misleading information about the total price of packages.

According to the commission, some of these firms advertised tours to the Whitsundays and Fraser Island for $299 (£165), when that price did not include mandatory charges that consumers had to pay.

Further compulsory charges could include insurance, national park fees, parking and environmental taxes, pushing the overall price up to as much as $450.

ACCC chairman Graeme Samuel said: "Businesses must be straight-up with their pricing and must not confuse consumers by hiding the total cost of goods or services or by using large price representations that do not include all mandatory costs."

Wicked Travel's website currently includes a banner explaining the correction and pledging to introduce a new compliance programme to stop the issue arising again.

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