The Australian Competition and Consumer Commission (ACCC) has initiated proceedings in the Federal Court against Webjet Marketing Pty Ltd, alleging the online travel platform misled consumers about flight prices and bookings.
Webjet offers travel-related products and services, including flights, hotels, car rentals, and travel insurance, through its website and app. The ACCC claims Webjet breached Australian Consumer Law by making statements about airfare prices that omitted mandatory fees charged by the platform.
According to the ACCC, Webjet promoted phrases such as “flights from $x,” which excluded compulsory fees like the ‘Webjet servicing fee’ and the ‘booking price guarantee’ fee. These fees ranged from $34.90 to $54.90 per booking, depending on whether the flight was domestic, New Zealand/Pacific, or other international routes.
The ACCC alleges these misleading statements appeared across Webjet’s app, marketing emails, social media, and website for various periods between November 2018 and November 2023. While Webjet’s website and app included information about these fees, the details were often only available in fine print or at the bottom of the screen, making them unclear and insufficiently prominent.
“Australian consumers are increasingly focused on managing travel costs, especially during periods of financial pressure. Claims about the lowest airfare prices must reflect the true minimum price, without undisclosed fees,” ACCC Chair Gina Cass-Gottlieb said.
The ACCC has also alleged that Webjet breached consumer law by misleading customers during the booking process. Specifically, the company displayed online confirmation pages and sent confirmation emails for flight bookings that had not been finalised with airlines.
In 382 instances over a five-year period, consumers were allegedly informed their flights were booked, only to later be asked for additional payment to complete the booking or offered a refund instead. Some consumers, relying on these confirmations, may have incurred additional costs or faced disruptions when they had to choose between paying extra or canceling related travel arrangements.
“We are deeply concerned by this alleged conduct, where consumers were misled into believing their bookings were confirmed, leaving some in a difficult financial position,” Ms. Cass-Gottlieb added.
The ACCC emphasised its focus on consumer protection in the aviation and digital economy sectors, reminding businesses of their obligation to comply with Australian Consumer Law, including transparency around pricing and fees.
The ACCC is seeking penalties, declarations, injunctions, consumer remedies, costs, and other orders from the Federal Court.
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