By David Swan
Australia’s competition and consumer watchdog has launched Federal Court action against Webjet, accusing the online travel booking site of misleading consumers about flight prices and bookings.
The ACCC alleges Webjet breached consumer law in statements made in its app, marketing emails and social media about the minimum price of airfares, which omitted compulsory fees.
The posts, between November 2018 to November 2023, included “flights from $x” but excluded Webjet’s fees, which were up to $54.90 per booking.
An example of a Webjet offer that the ACCC highlighted. Credit:
“We know how much Australian consumers value air travel to stay connected for work, leisure or to visit family,” ACCC chair Gina Cass-Gottlieb said in a statement.
“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.”
Webjet also allegedly broke consumer law in 382 bookings over five years by displaying a confirmation page and sending a confirmation email after taking payment, despite the company allegedly not booking the flight with the airline.
The ACCC said in these cases Webjet then 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.
“We are very concerned about this alleged conduct by Webjet, which represented to consumers that their flight booking had been confirmed and left some consumers in the position of having to pay more to later complete the booking,” Cass-Gottlieb said.
The ACCC is seeking penalties, consumer redress and other orders.
Webjet said in a statement it had fully co-operated with the ACCC during its investigation.
“Webjet Marketing has already voluntarily and proactively undertaken a number of steps to further improve its disclosure of pricing and fees. So far as Webjet Marketing is aware, the ACCC concerns do not relate to its current fee disclosure and pricing practices,” the company said.
“Webjet Marketing takes compliance with Australian Consumer Law extremely seriously and has always prided itself on its high levels of trust with all stakeholders, especially our customers.
“Millions of customers have chosen to book through Webjet Marketing during the period in question, and we have very rarely been contacted by customers complaining about our disclosure of fees. Webjet Group is confident there is no widespread customer dissatisfaction with our offering, disclosure, service or pricing.
“As the matter is subject of proceedings in the Federal Court, Webjet Group will not be making any further comment at this time.”
The ACCC legal action comes a year after Webjet boss John Guscic called for Australia to implement stronger consumer protections in the tourism and travel industry in an interview with this masthead.
“I think Australian travel consumers and the industry would be better off if there were greater protections around bookings and being able to fulfil them,” Guscic said.
“Philosophically I’m usually against more regulation, but there are exceptions and I think [the tourism sector] is one of them,” he added.
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