MSC Cruises faces complaint over 'misleading R1 promotional offer'

A cruise liner’s "first guest pays R1" promotion came under the spotlight when the Advertising Regulatory Board was called upon to consider a consumer complaint against MSC Cruises S.A. in respect of a Black November promotional advertisement.

The advertisement was posted on Facebook and on its website. The complaint relates to the Black November promotional offer, promising a limited-time opportunity to enjoy a cruise from Durban aboard the MSC Opera.

It offered options ranging from short two-night trips to festive 14-night voyages. The promotional offer is, in particular, that the first guest will pay R1 for the cruise, with disclaimers noting that mandatory fees apply and terms and conditions are available via linked pages.

On the advertiser's booking interface, pricing options are depicted as ranging “from R1,910 p.p.” for various cabin types (interior, ocean view and balcony) as well as “from R4,838 p.p.” for longer cruises with onboard credit.

It is also depicted that “total prices for two guests ranging from R7,019 to R49,676, depending on the selected cruise and cabin.”

The complainant submits that when selecting the Black November offer and adding a second guest, the total price displayed is significantly higher than expected, in some cases exceeding the standard fare for two guests.

For instance, the complainant submitted, where the advertised per-person price is R4,838, the total shown is R49,676, and where the price is R1,910 per person, the total is actually R7,019 for two guests.

The complainant contends that this pricing structure is misleading and inconsistent with the promotional claims. The advertiser noted that it is not a member of the ARB and does not submit to the ARB's jurisdiction and that its response is provided without prejudice.

The cruise line company confirmed that the promotional material referenced by the complainant formed part of its “Black November” campaign, which ran in South Africa from November 5 to 17 last year.

The advertiser explained that the promotion allowed the first guest to pay R1, excluding mandatory fees, while the second guest paid the full fare plus mandatory fees.

Mandatory fees, it says, comprise port charges and hotel service charges, which apply to all passengers and cannot be discounted or altered for promotional purposes. MSC stated that these fees vary depending on the length and itinerary of the cruise.

In relation to the complainant's two examples, MSC provides a breakdown of the pricing, in which it explains that on the 14-night cruise priced “from R4,838 p.p.,” the first passenger paid only mandatory fees (R4,838), while the second passenger paid the full cruise fare (R40,000) plus mandatory fees (R4,838), resulting in a total of R49,676 for two passengers.

For the two-night themed cruise priced “from R1,910 p.p.,” the first passenger paid R1 plus mandatory fees and a third-party entertainment fee (totaling R1,910), while the second passenger paid the full fare plus the same mandatory and entertainment fees (totaling R5,109), resulting in a total of R7,019.

MSC submitted that these amounts align with the advertised offer and the applicable terms and conditions. It emphasised that all charges are displayed transparently in the booking summary before a customer proceeds to payment and that variations in cruise fares arise either from promotional discounts or from MSC's dynamic pricing model.

MSC denied that the advertisement was misleading or that any pricing irregularity occurred.

The ARB accepted that mandatory fees apply to all MSC cruises and that these fees vary depending on itinerary and duration. However, it said, the question is not whether the totals can be mathematically justified after the fact, but whether the advertisement, as presented to consumers, creates a misleading impression about the nature of the prices quoted.

It found the advertisement misrepresented the actual price payable.

zelda.venter@inl.co.za