Car rental companies fined for misleading tourists

Two Christchurch car rental companies have been ordered to pay more than $40,000 in fines and reparations for misleading mainly overseas visitors.

Affinity Car Rental New Zealand and Euro Car Rental New Zealand, and their directors, Kylee and Gary Harris, pleaded guilty in Christchurch District Court to 18 charges of breaching the Fair Trading Act. 

A Commerce Commission investigation found the companies misled consumers, most of whom were from overseas. 

Some consumers complained that Euro Car Rental blamed them for damage they hadn't caused and charged them for non-existent repairs.

Others said they were promised late model cars but were given cars up to eight years old. 

Affinity Car Rentals advertised a Qualmark endorsement which had expired.

``Many overseas visitors make their decisions on what rental car company to use well in advance of their arrival in New Zealand so it is particularly important that information available on websites is accurate,'' the commission's general manager of enforcement Kate Morrison said today.

When businesses did not compete fairly and mislead consumers New Zealand's image as a tourist destination was harmed, she said.

``As the country prepares for the increasing number of overseas visitors expected for the Rugby World Cup, the commission is paying particular attention to those sectors providing goods and services to tourists,'' Ms Morrison said. 

Judge Jane Farish noted the offending was aggravated by the fact that it was directed mainly at overseas tourists.

She imposed fines and costs totalling $37,960 as well as ordering a total of $5750 to be paid in reparation to affected consumers.

- NZPA