Consumer Commission fines beach hotel for not including taxes in advertisement

November 26^th, 2012 (InsideCostaRica.com) The Technical Support Unit for the National Consumer’s Commission has issued a fine to the hotel “Villas Playa Samara,” for alleged false advertising.

The report was filed by the Costa Rican Consumers Commission, because of an ad that the hotel ran in which the price for accommodations was printed without including taxes.

According to the Consumers Commission, the hotel violated the “Law for Competition and Effective Consumer’s Defense.” The hotel was issued a fine of 1,750,000 colons (about $3,500), and is also required to publish a new ad in which the rates with taxes are included.

“If there is noncompliance of what has been ruled, the debt and file will be certified and referred to the General Controller’s Office, in order to be executed in the State’s name. Also, the Technical Support Unit for this Commission must proceed by referring the file to the Public Ministry for the offense of failure to obey the law,” the commission’s resolution stated.

The case dates back to 2010, when Villas Playa Samara published an ad in a national newspaper, advertising rooms for $129, with the phrase “+impu” (short for “impuestos,” meaning taxes) next to the price.  According to the commission, the ad did not include the final price, which is an apparent violation of law.

Villas Playa Samara said in their defense that other hotels do the same thing, that it is a practice known in the market, and that the price of the taxes were included in the bottom of the ad with an asterisk (“the small print”).

The commission, however, determined that the prices on services and goods must be shown in a manner that leaves no doubt whatsoever as to the final price, including all applicable taxes, not just sales tax.