The National Consumer Commission (NCC) has warned airlines, stating that the practice of overbooking flights is illegal under the Consumer Protection Act (CPA).
This follows an incident involving FlySafair last year, in which a passenger was left stranded at the airport despite holding a valid ticket, due to the airline’s overbooking practices.
The case prompted the NCC to launch an investigation into the wider practice of overbooking and overselling tickets by domestic low-cost carriers. The Commission confirmed that its investigation into the complaint against FlySafair is still ongoing.
At the time, FlySafair maintained that overbooking helps to keep ticket prices affordable for passengers. Meanwhile, other airlines, including CemAir, distanced themselves from the practice.
During a joint meeting of Parliament’s Portfolio Committees on Trade, Industry and Competition, and Transport, acting NCC Commissioner and Deputy Commissioner of the Competition Commission, Hardin Ratshisusu, reiterated that the practice is unlawful.
“I just need to emphasise that the CPA prohibits a supplier from accepting payment for goods or services that do not exist,” Ratshisusu said during the meeting, according to Moneyweb.
“So suppliers must not offer services or products that are not there to consumers because the CPA will kick in,” he added.
IOL previously reported that the portfolio committee expressed their intent to seek legal advice regarding a possible parliamentary inquiry into alleged “anti-competitive behaviour” within the country’s low-cost airline sector.
“We have started the process now and we have the necessary information from all the entities. The committees will then seek legal advice based on the information it has,” said committee co-chairperson, Mzwandile Masina.
Cape Argus