The Commerce Commission has filed civil proceedings under the Fair Trading Act against Bachcare Limited (Bachcare).

Bachcare is a full service holiday home rental company with more than 100 listings in the Wānaka area. 

The Commerce Commission has alleged that a number of Bachcare’s contract terms are unfair and liable to cause ‘financial detriment’ to Kiwis and other tourists booking holiday accommodation through the website.

Commerce Commission chair John Small says holidaygoers should take the time to read and understand the terms and conditions (Ts&Cs) of their accommodation booking – particularly any cancellation or refund policies.

While there is a clear responsibility for businesses, John said the case against Bachcare serves as a timely reminder to all holidaymakers to “know what you’re signing up to before you make a booking”.

“We also expect that businesses have contracts that do not put consumers at an unfair disadvantage,” he said. 

The Commission is seeking declarations from the High Court that some of Bachcare’s previous and current terms for booking properties through the site are unfair.

These include terms that mean: If a guest cancelled their booking, regardless of how far in advance that was from the holiday date, the guest could lose up to 100 percent of the amount paid; Bachcare would keep its service fee regardless of whether the accommodation was cancelled by Bachcare or the guest; If the booking was cancelled outside of either party’s control – for example an extreme weather event – and it was not possible to reschedule the booking, the guest could lose 100 percent of the amount paid.

If the Commission’s case is successful, the declarations would prevent Bachcare from using these terms in any current or future bookings. 

This is the second time the Commission has taken Bachcare to Court. In 2019 Bachcare was fined for misleading consumers by altering and withholding publication of online reviews posted by users of its accommodation services.

Civil proceedings against Bachcare are now before the High Court and the Commission said it will not be commenting further.