The Australian Competition and Consumer Commission (ACCC) has filed a Federal Court case against Webjet, alleging deceptive marketing and unfulfilled flight bookings in breach of Australian Consumer Law.
The ACCC claims that from 2018 to November 2023, the online travel company promoted “cheap flights” while failing to adequately disclose mandatory fees, including service fees and booking guarantee charges, which ranged from $34.90 to $54.90 per booking.
According to ACCC chair Gina Cass-Gottlieb, “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”, adding that transparent pricing is essential amid rising cost-of-living pressures.
The regulator alleges that while fee information was included on Webjet’s platforms, it was often relegated to fine print or hidden at the bottom of screens, leaving consumers unaware of the full costs.
Breach of consumer law
In addition to advertising practices, the ACCC has raised concerns about unfulfilled flight bookings.
In at least 382 cases, Webjet allegedly confirmed bookings via on-screen notifications and emails but later informed customers their flights had not been secured. Affected passengers were either asked to pay additional charges to complete the bookings or offered refunds, causing significant inconvenience.
Webjet has stated it is cooperating with the ACCC and has implemented measures to improve fee transparency. The company noted that it had received minimal complaints regarding fee disclosures.
The ACCC seeks financial penalties for the alleged breaches, with the Federal Court hearing scheduled for today. The implications for Webjet’s business remain uncertain.