The Commerce Commission took civil action following complaints by users. Photo: Screenshot / bachcare.co.nz
The High Court has declared some contract terms by holiday home rental website Bachcare were unfair.
The Commerce Commission took civil action following complaints by users.
It said Bachcare's terms meant if a guest cancelled their booking, regardless of how far away their holiday was, they could lose the full amount paid.
It said Bachcare also included terms that allowed it to keep its service fee when the accommodation was cancelled by Bachcare or the homeowner.
Other complaints related to instances of severe weather.
"For example, multiple complaints concerned cancellations due to Cyclone Hale and Cyclone Gabrielle, with guests unable to cancel bookings and obtain a refund when travel to the accommodation was unsafe, not recommended or not possible," Commission chair John Small said.
He said further complaints related to guests losing deposits when they had made an administrative error, which they then tried to correct.
The Commission said Bachcare had since changed its terms and conditions.
It said the case was one of the few that had considered unfair contract terms in contracts imposed by digital platforms.
"The judgement identified a range of unfair cancellation clauses, reinforcing the need for businesses to assess the fairness of their cancellation terms and the remedies available to consumers when contracts are cancelled - whether by the supplier, the consumer, or circumstances beyond their control," Small said.
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