A camper van rental company has agreed to refund more than $40,000 to customers after it offered "$0 liability" cover in the event costumers damaged their vehicle.
Travellers Autobarn Limited used exclusions in the fine print of rental contracts to void customer's limitation of liability, causing them to remain liable for significant damages well above the capped amount, authorities said.
The Australian company has also been ordered provide better information about options for consumers surrounding liability caps and to be more transparent about disclosing the exclusions.
In a statement, Commerce Commission chair Anna Rawlings said the camper van company was likely to have breached the Fair Trading Act and had left some consumers paying considerably more in damage fees.
"Those descriptions were likely to mislead consumers as to the extent of the liability protection provided," she said. "The exclusions in the contracts could result, and sometimes did result, in consumers paying more than these capped amounts."
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