Opt out charges

Stuff reports:

The Commerce Commission’s investigation into Air New Zealand’s “opt-out” charges could be expanded to include other companies using the sales tactic.

The commission confirmed yesterday that it was investigating the national airline over travel insurance contracts on domestic flights that are automatically added unless customers choose to opt out of them.

However, Consumer New Zealand chief executive Sue Chetwin said Air New Zealand was not the only airline that added opt-out charges during the booking process.

“Jetstar aren’t very good and they may be marginally worse than Air New Zealand,” she said.

Jetstar’s website shows several opt-out charges during the booking process for a typical domestic flight between Auckland and Wellington.

These include:

Opting out of a 20kg extra baggage allowance: $11

Opting out of seat select: $5

Opting out of insurance: $10.95

Jetstar has been asked for comment on its opt-out charges.

Opt out charges are a rort. They make money by hoping people will forget to deselect them. I’ve travelled probably 500 times with Air NZ. Not once have I ever had a situation where their flight insurance would have been beneficial. Yet if I did not opt out each time they would have had $5,000 more money from me.

Non-compulsory charges should be opt in.

Wellington lawyer Michael Wigley, who triggered the Commerce Commission inquiry with articles criticising Air New Zealand, said people who bought insurance accidentally should have it refunded, even if they had already had their flight.

“You don’t get any benefit from the insurance if you don’t even know you’ve paid for it.” 

Exactly.