The Australian Competition and Consumer Commission (ACCC) has commenced proceedings in the Australian Federal Court against online travel booking site Webjet, for allegedly making false and misleading representations to consumers about flight prices and bookings.
Webjet’s app and website offers travel-related products and services to consumers, allowing customers to compare and book flights, hotels, car rentals and travel insurance.
The ACCC alleges Webjet breached the 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 which omitted compulsory fees charged by Webjet.
The statements included “flights from $X” when the price quoted excluded Webjet’s compulsory ‘Webjet servicing fee’ and ‘booking price guarantee’ fee which ranged from $34.90 to $54.90 per booking, depending on whether the flights were domestic, NZ/Pacific flights or other international flights.
These statements were made for various periods of up to five years between November 2018 to November 2023.
According to the ACCC, the fees were not disclosed in Webjet’s social media posts. Although the Webjet website, Webjet app and most promotional emails contained information about the Webjet fees, it was typically only accessible by scrolling towards the bottom of the relevant screen, was in fine print and not sufficiently clear or prominent.
“We know how much Australian consumers value air travel to stay connected for work, leisure or to visit family,” said Gina Cass-Gottlieb, chair of the ACCC.
She continued: “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.”
In addition, the ACCC also stated that Webjet is alleged to have breached consumer law by displaying a confirmation page online and sending a confirmation email after taking payment for a completed flight booking when in fact, in respect of 382 bookings, it had not booked the flight with the airline.
In these cases, Webjet later allegedly sought additional payment from the consumers to complete the booking, or offered the consumer a refund for the flight, despite having earlier confirmed the booking.
It is alleged that Webjet made these misleading representations in respect of 382 bookings over more than five years, between at least November 1, 2018, and June 25, 2024.
The ACCC is seeking pecuniary penalties, declarations, injunctions, consumer redress, costs and other orders.