European Court of Justice: insolvency protection also applies in case of a package organiser’s fraudulent conduct
The Landgericht Hamburg (Regional Court, Hamburg, Germany) asked the ECJ whether the protection of consumers pursuant to article 7 of the Package Travel Directive (PTD) also applied where the insolvency was attributable to fraudulent conduct on the part of the travel organiser. The Landgericht Hamburg must rule on the action brought by Mr Blödel-Pawlik against HanseMerkur Reiseversicherung AG, a German insurance company, concerning its refusal to refund the cost of package travel which did not take place because of the insolvency of the travel organiser, Rhein Reisen GmbH. The travel organiser – which, in the view of the Landgericht, had never really intended to organise the trip which Mr Blödel-Pawlik had booked for himself and his wife – became insolvent because it had embezzled the money paid by prospective travellers. It had taken out insurance against insolvency with HanseMerkur Reiseversicherung AG and had provided Mr Blödel-Pawlik with two notices of guarantee confirming that the cost of the trip would be refunded if the trip did not take place owing to the organiser’s insolvency. According to the insurance company, however, the Package Travel Directive is not intended to protect travellers against fraudulent conduct on the part of a package travel organiser.
In judgment of Feb. 16, 2012, the ECJ held that the protection conferred on travellers under the PTD in the event of insolvency on the part of the package travel organiser applies even where the insolvency is attributable to the organiser’s own fraudulent conduct. The directive is specifically aimed at arming consumers against the consequences of insolvency, whatever its causes. Accordingly, the fact that the insolvency of the travel organiser is attributable to its own fraudulent conduct cannot constitute an obstacle to the refund of money paid over or to the repatriation of travellers.
Source: ECJ press release 13/12 of Feb. 16, 2012
Find full text of judgment in Case C-134/11 - Jürgen Blödel-Pawlik v HanseMerkur Reiseversicherung AG here>>.
USA: New York law firms file class action against Costa
As reported by "Travel Weekly", New York-based personal-injury law firm Proner and Proner said it joined forces with Codacons, the Italian consumer-protection organization, in filing a class action against Costa Cruises. A second New York law firm, Napoli Bern Ripka Shkolnik, also will represent passengers in the class action.
Proner said that the suit will seek at least USD 160,000 for each passenger who was aboard the ship at the time of the Jan. 13 disaster near the Italian island of Giglio.
Source: Travel Weekly; find article here>>.
European Union: new Directive on Consumer Rights published in Official Journal
The new Directive 2011/83/EU of the European Parliament and the Council of Oct. 25, 2011, on consumer rights, amending Council Directive 93/13/EEC and Directive 1999/44/EC of the European Parliament and of the Council and repealing Council Directive 85/577/EEC and Directive 97/7/EC of the European Parliament and of the Council has been published in today's edition of the Official Journal of the European Union.
The new Directive applies (under the conditions and to the extent set out in its provisions) to any contract concluded between a trader and a consumer. However, it does not apply to
contracts which fall within the scope of the PTD or the Timeshare Directive as well as
contracts for passenger transport services (except of some articles of the directive which do apply to passnger transprot contracts).
The full text of the directive which comes into force on the 20th day following its publication and has to be implemented by the member states into national law by 13 December 2013 is available here>>.
USA: DOT fines Orbitz for violating price advertising rules
The U.S. Department of Transportation (DOT) on Oct. 17, 2011 fined the online ticket agent Orbitz USD 60,000 for violating federal aviation laws and the Department’s rules prohibiting deceptive price advertising in air travel. For a period of time in early 2011, Orbitz’s homepage displayed advertisements that did not provide any information on additional taxes and fees.
European Commission publishes results of the Online ticket Sales Sweep
Results of the 2010 sweep websites selling tickets to cultural and sporting events are positive, the Commission announced on 29 Sept. 2011: 88% of the websites checked for breach of EU consumer rules are now in line compared to only 40% in 2010.
This sector was chosen after European Consumer Centres received numerous complaints.
USA: DOT fines Virgin Atlantic for deceptive online advertising
The U.S. Department of Transportation has fined Virgin Atlantic USD 50,000 for deceptive online advertising. The DOT said that Virgin Atlantic displayed air fares, but without government taxes and fees. To see taxes and fees, consumers had to scroll down to the bottom of the page to read the fine print.
USA: DOT fines JetBlue for deceptive pricing
The U.S. Department of Transportation (DOT) fined JetBlue Airways USD 50,000 for violating federal aviation laws and the Department’s rules prohibiting deceptive price advertising in air travel.
Austrian Constitutional Court: no state liability for alledgedly false application of the Package Travel Directive
The plaintiff (a lawyer) initially had sued a tour operator for mal-performance of a package travel contract. The claim had been dismissed by all instances as courts had held that the plaintiff had booked accomodation in a Dubai city hotel with half board and a shuttle service to the beach - and had exactly got what he had booked. It had to be regarded obvious that a city hotel could not offer the same amenities with regard to duration and flexibility of staying at the beach like a hotel directly situated there.
