Question
Lizzie and her best friend Peggy decided to take a holiday in Broome to celebrate Lizzie's engagement. They visited their local travel agent, BestHolidays Ltd,
Lizzie and her best friend Peggy decided to take a holiday in Broome to celebrate Lizzie's engagement. They visited their local travel agent, BestHolidays Ltd, and spoke to a travel agent named George. George was very enthusiastic and presented Lizzie and Peggy with several great holiday options. Lizzie and Peggy were keen on staying at Palm Tree Springs, a four-star holiday resort, but George suggested they choose the all-inclusive five-star option at the Pink Lagoon Hotel and Spa. George told Lizzie and Peggy all about the Pink Lagoon package, stating that the all-inclusive package included a deluxe sea-view room, all meals at the hotel's restaurant, the Pink Flamingo, from a luxurious organic buffet, beverages, activities such as snorkeling and horse riding on the beach, and three spa treatments of their choice.
Although the Pink Lagoon Hotel option was more expensive, Lizzie initially wanted to go to Palm Tree Springs because she had vacationed there many years before and had a great experience. However, George earned a higher commission from bookings at the Pink Lagoon Hotel and Spa and, sensing Lizzie and Peggy's indecision, showed them the hotel's pamphlet. The pamphlet highlighted all the activities and spa facilities and prominently stated "All inclusive." It also included several reviews praising the stay at the Pink Lagoon, including one from a well-known celebrity, Georgia Kingsley. The pamphlet was dated September 2021.
Lizzie and Peggy decided to book the trip, and three weeks later, they arrived at the Pink Lagoon Hotel and Spa. They waited at the reception counter, which was extremely clean, with only one large ornamental lamp on display. Behind the counter, there were various pieces of artwork. When Lizzie got to the room, Peggy suggested they go down to the pool. Lizzie, mindful of her new engagement ring, took it off and left it on the bed in her jewelry box.
After a leisurely swim, Lizzie and Peggy went down to the Pink Flamingo for dinner, only to find the restaurant closed with a sign stating, "Closed from May 2021 - December 2021 due to Covid restrictions." When Lizzie inquired at the desk where they were supposed to eat, she was handed two paper bags with a pre-made sandwich and an apple and was told that for breakfast they would receive muffins with a piece of fruit. Peggy went down to the Spa to book a massage treatment but was told there were no bookings available. When Peggy protested that the spa treatments were supposed to be included, the attendant shrugged.
When they tried to book horse riding, they were charged an additional $100 fee each for the use of a helmet.
When they returned to their room that afternoon, Lizzie was horrified to discover her engagement ring was gone. They went down to reception to report the theft and ask how to make a claim from the hotel. The clerk told them they could not make a claim because, according to the guest information book in their room, the hotel was not responsible for any damage or theft of personal property left in hotel rooms. Additionally, the clerk pointed to a sign on the wall next to the artwork. However, the sign, rather than looking like a warning, had various paint blobs splattered over it, making it look like a piece of artwork. Lizzie hadn't even noticed the writing.
Many of the guests were unhappy with their holiday. One of the guests, Jeremy, said he knew the owners and that the place was a huge scam. He also mentioned that the food wasn't organic and that the testimonials in the pamphlet were fake and made up. He said that Georgia Kingsley did stay at the resort, but it was not the well-known celebrity Georgia Kingsley, but rather the owner's niece who had the same name.
- Peggy and Lizzie have come to you for advice. They are very unhappy with their holiday and want to know if they have grounds to bring an action under Australian Consumer Law. Advise Lizzie and Peggy.
- Whether Lizzie can make a claim for the ring from the Pink Lagoon resort?
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