Word of Advice

30 June 2008

Beware of ‘free’ holiday vouchers

This time of year we are all dreaming of far-away beaches and warmer climes and many of us will be looking for a mid-winter break. So now’s a good time for a reminder to be on your guard if you get a phone call from a telemarketer selling vouchers for free or discounted holidays, hotels and flights. If it sounds too good to be true, it probably is.

How it works

You’ll get a phone call out of the blue from a telemarketer offering vouchers for free or discounted holidays. All they need from you is a ‘processing fee’ - then they’ll send you vouchers which you can use to redeem against a holiday or travel.

As you may have guessed, once you’ve parted with your ‘fee’ you’ll never hear from the company again. The vouchers simply do not exist and you’ll be out of pocket.

There are companies which do offer legitimate vouchers that give genuine discounts, but any company that sells vouchers which are not redeemable for the services they claim are breaking the law.

Being wary is the best bet

There’s nothing wrong with being cautious when you get an unexpected call offering any service or offer, including discount holiday vouchers. A legitimate company won’t mind you taking steps to ensure that the offer is genuine.

Your first step should be to get details of which providers (like hotels or airlines) are involved in the voucher scheme. You should then contact them directly to check whether the offers are real. If the telemarketer refuses to give you these details, hang up the phone.

When talking to the salesperson, be cautious and resist any high-pressure sales techniques. Get details about the company marketing the vouchers, but beware that some non-genuine salespeople may also give you a company registration number or an address to satisfy you that their organisation is real.

The main rule of thumb is: any offer that sounds too good to be true is probably a scam.

Prosecutions

In 2007 the Commerce Commission took action against a group of Australian companies operating in New Zealand. The Courts issued an injunction prohibiting the company, its director, and associated companies from making certain false and/or misleading representations about the cost and validity of their holiday voucher programme.

Has this happened to you?

If you’ve purchased ‘free’ vouchers or discounted holidays, hotels and flights, but have not been able to redeem them, the Commerce Commission is interested in hearing from you. Call 0800 943 600.

For more information about the common types of scams, visit SCAMwatch part of the Ministry of Consumer Affairs website.