The High Court has ruled that several contract terms used by the holiday home rental website Bachcare are unfair. This decision follows civil action initiated by the Commerce Commission in response to complaints from users.
It said Bachcare’s terms allowed guests to forfeit the entire amount paid if they cancelled their booking, no matter how far in advance the cancellation was made.
Bachcare’s terms also permitted the company to retain its service fee if the accommodation was cancelled by Bachcare or the homeowner.
Additional complaints concerned situations involving severe weather. According to Commission chair John Small, “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.”
Small mentioned additional complaints involved guests losing deposits after making an administrative error that they attempted to rectify.
For ComCom, this case was among the few to examine unfair contract terms in agreements enforced 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.