The OFT was concerned that Ryanair's terms excluded liability
for damage to sporting equipment, such as golf clubs or skis,
infant equipment, medical equipment and musical instrucments. The
terms stated that these items were carried on a 'limited release
basis' – in other words, at the passenger's own risk. Ryanair
has now removed these exclusions of liability from its terms and
conditions.
Ryanair's policy on lost luggage was also considered to be
unfair by the OFT. Ryanair required that if an item of baggage was
reported as lost and not found within 21 days, consumers would have
to make a further claim within a further 21 days, otherwise Ryanair
excluded liability for the lost baggage. In the OFT's view this
relieved the airline of liability to a greater extent than
permitted by the Montreal Convention which sets out airlines'
liabilities for passengers and their baggage. Ryanair amended the
terms so that the consumer is not required to make a further claim
within the 21 day period, and also removed the requirement that
consumers complete a 'Property Irregularity Report' when making a
claim for damaged or delayed baggage, which the OFT also considered
went beyond the provisions of the Montreal Convention.
In the event that flights are delayed or cancelled, the OFT was
concerned that Ryanair's terms did not reflect consumers' full
rights under the relevant EU Regulation. Ryanair has now amended
these terms and included a copy of the notice setting out these
rights on its website.
OFT Director of Services Ray Hall said: "'The OFT's action has
secured improvements to Ryanair's terms that will benefit
passengers. We expect other airlines using similar terms to stop
doing so immediately. Continued use of such terms will be
considered a breach of the Unfair Terms in Consumer Contracts
Regulations 1999."
The Unfair Terms in Consumer Contracts Regulations say that a
consumer is not bound by a standard term in a contract with a
seller or supplier if that term is unfair. They also give the OFT
and certain other bodies powers to stop the use of unfair standard
terms, if necessary by obtaining a court injunction. However,
ultimately only a court can decide whether a term is unfair.
