Webjet in legal battle over flight price misrepresentation

Webjet is facing legal proceedings for allegedly misrepresenting the minimum price of airfares on its app, email marketing, and social media posts.

The Australian Competition and Consumer Commission (ACCC) launched the legal action in the Federal Court against Webjet for displaying “flights from $X” statements but omitting its compulsory service fee and booking price guarantee fee in the advertised prices between November 2018 and November 2023.

The compulsory fees range from $34.90 to $54.90 per booking, depending on whether the flights were domestic or international.

The fees only appeared in fine print, which the ACCC contends was not sufficiently clear or prominent.

“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,” said Gina Cass-Gottlieb, ACCC chair.

The ACCC also alleges that Webjet breached consumer law by sending a booking confirmation message after taking payment from customers, but the company failed to book the flight with the airline.

This happened in 382 bookings between November 1, 2018 and June 25, 2024, resulting in passengers being forced to pay more or facing cancelled bookings at a potential loss.

The ACCC is seeking pecuniary penalties, declarations, injunctions, consumer redress, costs and other orders.

In May, Webjet said it was considering spinning off its consumer and business-facing divisions after posting record earnings for FY24.

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