Wondering why NCL can advertise the drink package as "Free" when it's not

[schildiams]

I see that NCL is currently advertising "Free Unlimited Open Bar" on it's landing page. There is no mention anywhere, even when you click "learn more" of any charges on this "free" benefit. It is only when you get through booking and see the final fare, does NCL assess a service charge on the "free" benefit. I know that this topic has been beaten to death, but I am still left to wonder how this is to considered to be misleading or false advertising? How can a benefit be considered "free" if it actually costs $300 per room? And if an open bar is truly "free" then a 20% fee on zero is zero. I get that NCL wants to make money on this, and I'm not opposed to paying a service charge. But, my point is, if it costs $300 per cabin, it should be advertised as such and not as "free." Anyone think that if this practice were legally challenged that the working would change?

 

Edited October 29, 2018 by schildiams

[schildiams]

GENERAL OFFERS AND CLAIMS — PRODUCTS AND SERVICES

The Federal Trade Commission Act allows the FTC to act in the interest of all consumers to prevent deceptive and unfair acts or practices. In interpreting Section 5 of the Act, the Commission has determined that a representation, omission or practice is deceptive if it is likely to:

• mislead consumers and 
• affect consumers' behavior or decisions about the product or service.

In addition, an act or practice is unfair if the injury it causes, or is likely to cause, is:

• substantial
• not outweighed by other benefits and
• not reasonably avoidable.

The FTC Act prohibits unfair or deceptive advertising in any medium. That is, advertising must tell the truth and not mislead consumers. A claim can be misleading if relevant information is left out or if the claim implies something that's not true. For example, a lease advertisement for an automobile that promotes "$0 Down" may be misleading if significant and undisclosed charges are due at lease signing.

 

 

[mjkacmom]

I’m guessing NCL has a legal team that has looked into this. On the ships that offer”open bar” there is no fee, but the DSC is higher.

[cdnsteelman]

There's an asterisk at the end of the "Free Unlimited Open Bar and More*" and below that asterisk is notated as "*Gratuities, Beverage, Specialty Service Charges & other restrictions may apply." Seems pretty straight forward to me.

 

[sverigecruiser]

2 minutes ago, schildiams said:

I see that NCL is currently advertising "Free Unlimited Open Bar" on it's landing page. There is no mention anywhere, even when you clerk "learn more" of any charges on this "free" benefit. It is only when you get through booking and see the final fare, does NCL assess a service charge on the "free" benefit. I know that this topic has been beaten to death, but I am still left to wonder how this is to considered to be misleading or false advertising? How can a benefit be considered "free" if it actually costs $300 per room? And if an open bar is truly "free" then a 20% fee on zero is zero. I get that NCL wants to make money on this, and I'm not opposed to paying a service charge. But, my point is, if it costs $300 per cabin, it should be advertised as such and not as "free." Anyone think that if this practice were legally challenged that the working would change?

 

 

I know that the service charge isn't the same as a tip but if we see it that way, it makes sense I think.

 

In the US if someone get a free meal for some reason, are they expected to tip or how are the waiters compensated for the work they do for that free meal?

 

In Sweden a free meal means a free meal since a tip isn't expected but how does it work in the US?

[NLH Arizona]

The drink package is free, otherwise you would be paying $99 a day.  They are charging for the gratuities/service charge and there is nowhere in any of their ads/website that says that it is also free.  NCL has been doing this for years, so I would venture to guess if there was anything illegal about it, they would have been taken to court by now, but if you would like to file a suit against them for this, please let us all know how it turns out, as I'm sure everyone would be interested.

[schildiams]

8 minutes ago, cdnsteelman said:

There's an asterisk at the end of the "Free Unlimited Open Bar and More*" and below that asterisk is notated as "*Gratuities, Beverage, Specialty Service Charges & other restrictions may apply." Seems pretty straight forward to me.

 

I would agree with that explanation except that there is NOTHING after the * on my screen, and when I click "learn more" this is all it says: 

PLUS CHOOSE UP TO 5 FREE OFFERS

 

• 1. UNLIMITED OPEN BAR
•  
• 2. SHORE EXCURSIONS
•  
• 3. SPECIALTY DINING
•  
• 4. WIFI
•  
• 5. FRIENDS & FAMILY

[schildiams]

9 minutes ago, cdnsteelman said:

There's an asterisk at the end of the "Free Unlimited Open Bar and More*" and below that asterisk is notated as "*Gratuities, Beverage, Specialty Service Charges & other restrictions may apply." Seems pretty straight forward to me.

 

Edited October 29, 2018 by schildiams
repeat

[cdnsteelman]

NCL offer.pages

[SNJCruisers]

6 minutes ago, sverigecruiser said:

In the US if someone get a free meal for some reason, are they expected to tip or how are the waiters compensated for the work they do for that free meal?

 

In Sweden a free meal means a free meal since a tip isn't expected but how does it work in the US?

If someone gets a free meal in the US or a buy one get one free, then you're expected to tip on the full value of the meal. Depending upon the level of service, anywhere from 15-20%.

[schildiams]

Wow I do see that now. Thanks - I really looked for it and still didn't find it 🙂 Still seems deceptive to have it all the way at the bottom in small italicized font and NOT in the "learn more" link. 

[schildiams]

2 minutes ago, SNJCruisers said:

If someone gets a free meal in the US or a buy one get one free, then you're expected to tip on the full value of the meal. Depending upon the level of service, anywhere from 15-20%.

True. And I would tip, of course. But this is not really a "tip" in that it is a mandatory upfront charge before service is ever rendered. 

[ColinIllinois]

2 minutes ago, schildiams said:

Wow I do see that now. Thanks - I really looked for it and still didn't find it 🙂 Still seems deceptive to have it all the way at the bottom in small italicized font and NOT in the "learn more" link. 

 

And there you have the old saying "always read the fine print".   Pretty much every major industry has marketing that in one way or another could be considered "deceptive". 

 

Caveat Emptor.

[Smong]

16 minutes ago, sverigecruiser said:

 

 

I know that the service charge isn't the same as a tip but if we see it that way, it makes sense I think.

 

In the US if someone get a free meal for some reason, are they expected to tip or how are the waiters compensated for the work they do for that free meal?

 

In Sweden a free meal means a free meal since a tip isn't expected but how does it work in the US?

absolutely a tip is expected for a free meal!  the server has nothing to do with the giving of the free meal and relies on those tips as part of their pay

[PTC DAWG]

First discussion of this on the new board, it’s about time. 🙂

[SNJCruisers]

6 minutes ago, schildiams said:

True. And I would tip, of course. But this is not really a "tip" in that it is a mandatory upfront charge before service is ever rendered. 

Tip versus upfront service charge is just a matter of semantics. If you pay for any of the drink packages that the various lines offer, you'll pay 15-20% upfront as a service charge/prepaid gratuity. The only line that doesn't charge it is Celebrity, unless you upgrade to their premium package, then you pay the gratuity on the price difference

[sverigecruiser]

8 minutes ago, schildiams said:

True. And I would tip, of course. But this is not really a "tip" in that it is a mandatory upfront charge before service is ever rendered. 

 

I know that it's not a tip but if the service charge is an important part of the staffs salary a service charge makes sense even for that "free" package, I think.

 

How else will the staff be compensated for the work they do?

[schildiams]

Just now, sverigecruiser said:

 

I know that it's not a tip but if the service charge is an important part of the staffs salary a service charge makes sense even for that "free" package, I think.

 

How else will the staff be compensated for the work they do?

I'm not questioning paying the charge - as I said above, I am happy to pay it and not contesting it. I was just bothered by the fact that it's not clear in the advertisement. It's not really "free" if you're paying $300 for it - that's all.

 

[schildiams]

2 minutes ago, SNJCruisers said:

Tip versus upfront service charge is just a matter of semantics. If you pay for any of the drink packages that the various lines offer, you'll pay 15-20% upfront as a service charge/prepaid gratuity. The only line that doesn't charge it is Celebrity, unless you upgrade to their premium package, then you pay the gratuity on the price difference

I agree - not questioning paying it. Just wish that they were more transparent about it. Why call it "free" and hide the charge explanation? Just be up front about it. 

 

[SNJCruisers]

58 minutes ago, schildiams said:

I agree - not questioning paying it. Just wish that they were more transparent about it. Why call it "free" and hide the charge explanation? Just be up front about it. 

 

The drink package is free, but the mandatory service charge/gratuity is 20%.  Somewhat deceptive, but very profitable.  NCL took the concept that Celebrity came out with and tweaked it two ways.  One, by charging the service charge, and two letting insides pick it as a perk and not requiring an OV as a minimum like Celebrity does.  The program is obviously profitable for them since it has been constant for years now.

[cathi007]

It may not be free, but it certainly is worth it to me. Even if you just drink 2-3 frozen drinks a day it is worth it. My last cruise I didn't get the drink package and when I ordered a frozen drink it was about 13.00 for one. Even if I have 3 a day I am making out.

[vpearlkc]

Lets see

1 bloody mary with breakfast

1 beer after morning workout

2 beers with lunch

3 three beers while relaxing on pool deck in afternoon

2 glasses of wine with dinner

1 pre show umbrella drink

2 martinis after show

Cut out the six beers on shore days.

I think the free open bar is a great deal for me. My wife is a slacker though and only consumes about 1/3 what I do. 

 

[Two Wheels Only]

2 hours ago, schildiams said:

Wow I do see that now. Thanks - I really looked for it and still didn't find it 🙂 Still seems deceptive to have it all the way at the bottom in small italicized font and NOT in the "learn more" link. 

 

Between having it on the home page or having it on the "learn more" page, which is more deceptive?

[tallnthensome]

2 hours ago, PTC DAWG said:

First discussion of this on the new board, it’s about time. 🙂

Haha! How many times can a discussion happen on this topic? Countless and someone will start another thread on this tomorrow probably ........ It never dies.

[SeaShark]

2 hours ago, schildiams said:

I see that NCL is currently advertising "Free Unlimited Open Bar" on it's landing page. There is no mention anywhere, even when you click "learn more" of any charges on this "free" benefit. It is only when you get through booking and see the final fare, does NCL assess a service charge on the "free" benefit. I know that this topic has been beaten to death, but I am still left to wonder how this is to considered to be misleading or false advertising? How can a benefit be considered "free" if it actually costs $300 per room? And if an open bar is truly "free" then a 20% fee on zero is zero. I get that NCL wants to make money on this, and I'm not opposed to paying a service charge. But, my point is, if it costs $300 per cabin, it should be advertised as such and not as "free." Anyone think that if this practice were legally challenged that the working would change?

 

 

NCL advertises the UBP for $99 dollars per day. However, in order to buy it, you also have to buy (pay for) the daily UBP gratuity/service charge...not to mention that you also have to buy a cruise.

 

Nobody complains because that $99 per day is false advertising because they also have to buy (pay for) the daily UBP gratuity/service charge, nor do they complain that it is false advertising because they also have to buy a cruise. 

 

Once you buy the cruise, you have the option of buying the drink package for $99 per day PLUS an additional 20% for the gratuity/service charge. One cost for the package, one cost for the gratuity/service charge.

 

In their offer, NCL allows you to get the drink package for FREE. Not the gratuity/service charge, not the cruise, just the drink package. So you still have to buy the cruise, you still have to buy (pay for) the gratuity/service charge. No trickery involved. No deception or trickery involved, it is just people hearing what they want to hear vs what was actually offered.

 

What you seem to be looking for is "Free Unlimited Open Bar Including Gratuities"....which is NOT what the offer states.