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‘False and deceptive’: Why is Australia’s consumer watchdog taking Qantas to court?

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Australia’s consumer watchdog has called for record fine against Qantas over cancelled flights.

Australia’s consumer watchdog has called for Qantas Airways to be punished with a record fine for allegedly selling tickets on thousands of flights that had already been canceled.

Qantas cancelled 1-in-4 flights between May and July last year.

The Australian Competition and Consumer Commission filed a lawsuit against the flagship carrier in the Federal Court on Thursday, alleging the airline engaged in false, misleading or deceptive conduct by advertising tickets for more than 8,000 flights during this period that had already been cancelled but not removed from sale.

ACCC chair Gina Cass-Gottlieb said Qantas’ penalty for allegedly breaching consumer law should be more than double the Australian record 125 million Australian dollar (€74 million) fine imposed on the Volkswagen Group in 2019 for misleading customers about the level of exhaust emissions from its diesel engines.

“We consider that this should be a record penalty for this conduct,” Cass-Gottieb told Australian Broadcasting Corp.

“We are going to seek a penalty that will underline that this is not just to be a cost of doing business.

“We consider these penalties to have been too low. We think the penalties should be in hundreds of million, not tens of million,” she added.

Why is the ACCC taking Qantas to court?

Qantas kept selling tickets on average for more than two weeks after flights were canceled and in some cases up to 47 days, the commission said.

Customers who bought tickets before flights were canceled were informed on average 18 days after the cancellations and in some cases 48 days later.

The result was that customers were left with less time to make alternative bookings and may have paid higher prices to fly at a particular time.

In one case, Qantas sold 21 tickets for a July 29, 2022, service from Sydney to San Francisco up to 40 days after that flight was cancelled, the commission said.

Qantas said it would respond in full to the commission’s allegations in court.

“We have a longstanding approach to managing cancellations for flights, with a focus on providing customers with rebooking options or refunds. It’s a process that is consistent with common practice at many other airlines,” a Qantas statement said.

“It’s important to note that the period examined by the ACCC between May and July 2022 was a time of unprecedented upheaval for the entire airline industry. All airlines were experiencing publicised issues from a very challenging restart, with ongoing border uncertainty, industry wide staff shortages and fleet availability causing a lot of disruption,” Qantas added.

How much profit did Qantas make last financial year?

The lawsuit came a week after Qantas posted a record profit for the fiscal year ending June 30, following years of losses due to the pandemic.

Its underlying profit for the year before tax was AU$2.47 billion (€1.48 billion), compared to a AU$1.86 billion ($1.2 billion) loss in the previous year.

Statutory profit after tax for the latest year was AU$1.74 billion (€1.04 billion).

Since Volkswagen made false or misleading representations over 57,000 diesel vehicles imported into Australia during five years to 2015, the penalty for each breach of Australian consumer law has increased from AU$1.1 million (€656,000) to AU$10 million (€5.99 million).

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  • Daniela Daecher is a twenty-something bookworm and coffee addict with a passion for geeking out over sci fi, tv, movies, and books. In 2013 she completed her BA in English with a specialization in Linguistics. In 2014 she completed her MA in Linguistics, focusing on the relationship between language and communication in written form. She currently lives in Munich, Germany.

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A 4-year cruise or a €1 house in Italy: Inside the schemes helping Americans skip Trump’s presidency

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Searches by Americans for moving abroad soared in the 24 hours after the first polls closed, according to Google data.

Following the recent US election result, Google searches for ‘how to move to Europe’ increased by more than 1,000 per cent in some countries.

Searches by Americans for moving to Canada and Australia soared by 1,270 and 820 per cent respectively in the 24 hours after the first polls closed, according to Google data.

The interest in leaving the States has not gone unnoticed by marketing firms.

A residential cruise ship is now offering Americans a four-year ‘escape’ trip while a Sardinian village has relaunched its €1 house scheme.

Cruise company offers four-year escape from Trump

Cruise firm Villa Vie Residences is marketing a four-year round the world trip to Americans looking to skip Donald Trump’s second term as president.

The Tour La Vie programme offers passengers a stay of up to four years onboard while visiting 140 countries – which doesn’t include the US.

The irreverently named packages include a one-year ‘Escape from Reality’ cruise, a two-year ‘Mid-Term Selection’ option, a three-year ‘Everywhere but Home’ cruise, and the four-year ‘Skip Forward’ trip.

Guests would join the Villa Vie Odyssey, a residential cruise ship which set sail from Belfast in September, several months into its voyage.

“We came up with this marketing campaign before we even knew who would win. Regardless of who would have won, you would have half of the population upset,” CEO Mikael Petterson told US news site Newsweek.

“Quite frankly, we don’t have a political view one way or the other. We just wanted to give people who feel threatened to have a way to get out.”

Prices start at a little under $40,000 (€38,000) a year. For those opting for the full four-year escape, single-occupancy cabins start at $256,000 (€243,000) while double-occupancy costs up to $320,000 (€303,000).

The price includes all food and drinks (alcohol only at dinner), WiFi, medical visits, weekly housekeeping service and bi-weekly laundry.

Sardinian village relaunches €1 house scheme for Americans

In rural Sardinia, the village of Ollolai has revived its €1 house scheme, now targeting Americans exhausted by the election.

The homes-for-the-price-of-an-espresso offer has been relaunched for US citizens “worned [sic] out by global politics” and “looking to embrace a more balanced lifestyle”, local authorities write on the village’s website.

“Of course, we can’t specifically mention the name of one US president who just got elected, but we all know that he’s the one from whom many Americans want to get away from now and leave the country,” village mayor Francesco Columbo told US news site CNN.

“We have specifically created this website now to meet US post-elections relocation needs.”

Those needs include slowing down and recharging with Ollolai’s dreamy Mediterranean lifestyle.

“Nestled in pristine nature, surrounded by incredible cuisine, and immersed in a community with ancient traditions in the rare Earth’s Blue Zone, Ollolai is the perfect destination to reconnect, recharge and embrace a new way of life,” the website claims.

Available properties will soon be listed online with prices ranging from €1 for houses needing substantial renovations to €100,000 for those that are ready to live in.

This is not the first time the village in Sardinia has put houses for a pittance on the market. In a bid to halt a steep population decline, Ollolai began selling off abandoned homes in 2018 to people willing to carry out $25,000 (€24,000) of renovations within a three-year timespan.

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  • Daniela Daecher is a twenty-something bookworm and coffee addict with a passion for geeking out over sci fi, tv, movies, and books. In 2013 she completed her BA in English with a specialization in Linguistics. In 2014 she completed her MA in Linguistics, focusing on the relationship between language and communication in written form. She currently lives in Munich, Germany.

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Catalonia’s holiday rental ban may not be allowed under EU law as Airbnb pushes back

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Catalonia has said they want to rid Barcelona of its 10,000 holiday lets in the next 5 years.

Catalonia’s recent ban on Airbnb-style holiday rentals breaches EU law, according to a complaint filed with the European Commission by an industry group.

The European Holiday Home Association claims that the ban, introduced by Catalonia in June this year, breaches the provision of services directive.

The Spanish region announced that they wanted to rid Barcelona of its 10,000 tourist flat licences over the next five years. The city has not granted new licences since 2014 but this has not helped to stem a housing crisis, with locals saying they can not find places to live at affordable prices.

Why has Barcelona’s Airbnb ban been challenged?

“We are convinced that EU law has not been respected,” Viktorija Molnar, Secretary General of the European Holiday Home Association (EHHA), said in a statement released on Wednesday.

“By submitting the EU complaint, we hope that the European Commission will take a step further and open a formal infringement procedure against Spain,” added Molnar, whose group represents short-term rental platforms like Airbnb and Expedia’s Vrbo.

The move follows legal concerns raised by the European Commission itself that restrictions brought in by the Spanish region were disproportionate to the aim of tackling housing shortages.

EHHA argues that “unjustified, disproportionate and unsuitable” restrictions breach the EU’s Services Directive, which regulates a swathe of activities from hotels to legal advice. They also said that claims about the impact of Airbnb on housing affordability are “politically inflamed”.

The lobby group may have support from the European Commission itself, whose officials wrote to Spanish authorities to protest the law in February according to a document seen by Euronews Travel.

“The Commission services consider that the restrictions laid down in [Catalonia’s] Decree-law 3/2023 are not suitable to attain the objective of fighting housing shortage and are disproportionate to that objective,” the document said.

Spanish authorities could have also considered less swingeing restrictions and hadn’t offered evidence that short-term rentals were responsible for housing market tensions, it added – noting that there were three times as many empty dwellings as tourist rental properties in Catalonia.

Barcelona is just one European holiday destinations trying to find ways to tackle overtourism.

Cities like Venice have banned cruise ships from stopping on their shores, Athens regularly restricts visitor numbers at the famous Acropolis and Amsterdam is moving its red light district out of the city centre to try and clean up its image.

How the European Commission is taking on holiday rentals

Brussels has already taken action to bring the sharing economy within the regulatory fold, offering new rights to platform workers and hiking value-added tax on short-term lets and ridesharing apps such as Uber.

But the issue could prove totemic for Commission President Ursula von der Leyen – who has created the first-ever European Commissioner for Housing as part of her second mandate, set to take office within weeks.

She has told Denmark’s Dan Jørgensen to “tackle systemic issues with short-term accommodation rentals”, in a mission letter that handed him the housing brief alongside responsibility for energy policy.

A spokesperson for the Catalan government did not immediately respond to a request for comment.

CORRECTION(20 November, 10:02): corrects spelling of Molnar’s name

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  • Daniela Daecher is a twenty-something bookworm and coffee addict with a passion for geeking out over sci fi, tv, movies, and books. In 2013 she completed her BA in English with a specialization in Linguistics. In 2014 she completed her MA in Linguistics, focusing on the relationship between language and communication in written form. She currently lives in Munich, Germany.

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Microsoft pitches AI agents that can perform tasks on their own at annual Ignite event

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The move has been criticised by other tech companies who have branded Microsoft as being a “panic mode”.

In opening remarks to a company conference in the United States on Tuesday, Microsoft CEO Satya Nadella has set the stage for where the company is taking its artificial intelligence (AI) business.

AI developers are increasingly pitching the next wave of generative AI (GenAI) chatbots as AI “agents” that can do more useful things on people’s behalf.

But the cost of building and running AI tools is so high that more investors are questioning whether the technology’s promise is overblown.

Microsoft said last month that it’s preparing for a world where “every organisation will have a constellation of agents – ranging from simple prompt-and-response to fully autonomous”.

Microsoft elaborated in a blog post Tuesday that such autonomous agents “can operate around the clock to review and approve customer returns or go over shipping invoices to help businesses avoid costly supply-chain errors”.

Microsoft’s annual Ignite conference caters to its big business customers.

Microsoft criticised

The pivot toward so-called “agentic AI” comes as some users are seeing limits to the large language models behind chatbots like OpenAI’s ChatGPT, Google’s Gemini and Microsoft’s own Copilot.

Those systems work by predicting the most plausible next word in a sentence and are good at certain writing-based work tasks.

But tech companies have been working to build AI tools that are better at longer-range planning and reasoning so they can access the web or control computers and perform tasks on their own on a user’s behalf.

Salesforce CEO Marc Benioff has criticized Microsoft’s pivot. Salesforce also has its “Agentforce” service that uses AI in sales, marketing, and other tasks.

“Microsoft rebranding Copilot as ‘agents’? That’s panic mode,” Benioff said in a social media post last month. He went on to claim that Microsoft’s flagship AI assistant, called Copilot, is “a flop” that is inaccurate and spills corporate data.

Author

  • Daniela Daecher is a twenty-something bookworm and coffee addict with a passion for geeking out over sci fi, tv, movies, and books. In 2013 she completed her BA in English with a specialization in Linguistics. In 2014 she completed her MA in Linguistics, focusing on the relationship between language and communication in written form. She currently lives in Munich, Germany.

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