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ALP supports ACCC warning to banks: don't fiddle with frequent flyers.



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Media Release by…

ALAN GRIFFIN MP Shadow Parliamentary Secretary for Consumer Affairs & Banking Services

Tuesday, June 11, 2002

ALP SUPPORTS ACCC WARNING TO BANKS DON’T FIDDLE WITH FREQUENT FLYERS

The ALP fully supports the Australian Competition and Consumer Commission comments on the National Australia Bank’s recent attempt to devalue frequent flyer points.

The retrospective nature of NAB’s original proposal deserved condemnation.

As the ACCC have said, “…by retrospectively changing the redemption rate, NAB risked misleading consumers by misrepresenting the value, characteristics, uses or benefits of the consumer’s National Rewards points.”

Although the NAB has backed down on this part of their original proposal, the comments of the ACCC serve as a warning to all banks not to fiddle retrospectively with frequent flyer schemes.

The ACCC warning on the conduct of such programs is timely and appropriate.

The forthcoming review of the Trade Practices Act needs to make sure that the ACCC can continue to look after the needs of consumers in this area.

For further information please contact:

Alan Griffin: 0419 353 476