Italian competition authority AGCM has fined EasyJet and Ryanair for "unfair" and "misleading" practices in their online travel insurance products.
Ryanair was fined €850,000 ($1.16 million) and EasyJet €200,000 for a “lack of transparency of travel insurance policies offered during the online purchase of air tickets and for the obstacles created in case of [a] refund”.
AGCM says the low-cost carriers’ practice of charging a fee to issue a certificate declaring that the consumer has not taken a flight in order for them to obtain a refund constituted “unfair commercial practice”.
The authority adds: “The effective risks covered by the insurance policy are not clearly indicated, while they are knowable only [by] reading the full conditions of contract.”
EasyJet says it is “disappointed by AGCM’s decision to fine the airline for the way it sold its travel insurance product in Italy.
“All of the issues raised in the decision have already been remedied in consultation with the AGCM and our insurance partner Allianz. EasyJet will examine the decision and review its options.”
Ryanair says: “We note this ruling and, while we disagree with its findings and have instructed our lawyers to appeal, we will be amending our website accordingly.”