Commerce Commission takes legal action against Bachcare for ‘unfair’ cancellation policies

Holiday accommodation booking giant Bachcare is being taken to court by the Commerce Commission. Photo / NZME

The Commerce Commission is taking holiday rental company Bachcare to the High Court, alleging that its contract terms are unfair and could be costing Kiwis booking accommodation through the website.

It marks the second time the commission has taken the company to court, after it was fined in 2019 for misleading customers by altering and withholding negative reviews posted by users online.

This new civil action is seeking a High Court declaration that some terms for booking properties were unfair including cancellations.

Those terms included customers facing losing the entire amount paid in the event they cancelled their booking - regardless of how early the booking was cancelled.

The commission is also seeking a declaration that Bachcare’s practice of keeping as much as all of the price paid when those cancellations were outside either party’s control, such as extreme weather, is unlawful.

Commission chairman Dr John Small said while consumers needed to be mindful that they know what they’re signing up for when they book, there is an obligation that contract terms are fair.

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

According to the commission, Bachcare manages more than 2000 properties nationwide and serves more than 150,000 customers annually.

In 2019, it was reportedly named one of the world’s top 20 holiday rental companies.

The commission said the company had changed its terms and conditions on multiple occasions in recent years.

The action comes after Consumer NZ laid a complaint with the Commerce Commission over “unfair” cancellation fees charged by Bachcare and Airbnb.

In November 2021, the commission told the Herald it was investigating complaints around Bachcare’s cancellation policy.

One complainant said they had lost their deposit on their booking in January, despite asking to cancel in October.

According to the Companies Office database, Bachcare Limited is wholly owned by ultimate holding company Vitruvian Partners LLP, which is based in Britain.

In a statement, Bachcare said: “Bachcare is fully co-operating with the Commerce Commission investigation and have at all times tried to balance the rights and interests between guests and owners.

“As the investigation is ongoing, we are not able to comment further.”