Australia’s consumer watchdog has commenced proceedings in the Federal Court against discount flight website Webjet over allegations it has misled customers.
The Australian Competition and Consumer Commission (ACCC) has launched legal action against Webjet for allegedly making false and misleading representations to consumers about flight prices and bookings.
The ACCC says Webjet breached Australian Consumer Law when it made statements on its app, in marketing emails, on social media and on its website about the minimum price of airfares. However, the prices did not include Webjet’s standard fees, a breach of the law.
The statements included “flights from $X” when the price quoted excluded Webjet’s compulsory ‘Webjet servicing fee’ and ‘booking price guarantee’ fee which range from $34.90 to $54.90 per booking.
The ACCC says these statements were over various periods between November 2018 to November 2023.
The ACCC is seeking pecuniary penalties, declarations, injunctions, consumer redress, costs and other orders. ACCC chair Gina Cass-Gottlieb says companies can not list a ‘lowest price’ that will be subject to other fees and charges later, rather they must list the full price inclusive of fees up front.
“We know how much Australian consumers value air travel to stay connected for work, leisure or to visit family,” she says.
“During this time of cost pressures, many consumers are carefully considering travel arrangements and seeking to save money. A statement about the lowest price must be a true minimum price, not a price subject to further fees and charges before a booking can be made.”
Have you booked flights through Webjet before? What would be an appropriate penalty for this conduct? Let us know in the comments section below.
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