Webjet Accused of Misleading Pricing and Booking Practices
The Australian Competition and Consumer Commission (ACCC) has initiated Federal Court proceedings against Webjet Marketing Pty Ltd, alleging false and misleading practices regarding flight prices and bookings. Webjet’s platform, which facilitates comparisons and bookings for flights, hotels, and other travel services, is accused of violating Australian Consumer Law.
The ACCC claims Webjet advertised airfares at minimum prices that excluded mandatory fees such as a ‘Webjet servicing fee’ and ‘booking price guarantee’ fee. These additional costs, ranging from $34.90 to $54.90 per booking, were often hidden in fine print, making the advertised prices misleading. These practices spanned five years, from November 2018 to November 2023.
Additionally, Webjet allegedly misled customers by confirming bookings without actually securing flights with airlines. This issue affected 382 bookings between November 2018 and June 2024. In such cases, consumers were later asked to pay extra or were offered refunds, disrupting their travel plans and potentially causing financial losses.
ACCC Chair Gina Cass-Gottlieb emphasized the importance of transparent pricing during a time of economic pressures. Misrepresentation of pricing or booking status, she noted, undermines consumer trust and forces tough financial decisions on customers.
The ACCC seeks penalties, consumer redress, and orders to prevent further breaches. Businesses, especially in the aviation and digital economy sectors, are reminded of their obligations to provide clear and accurate information to consumers.
ACCC