ACCC takes Webjet to court over false, misleading claims

The consumer watchdog has launched legal proceedings against Webjet for false and misleading promotion of airfares.

Online travel booking site Webjet has been accused of making “false and misleading representations to consumers about flight prices and bookings” by the Australian consumer watchdog.

The ACCC alleges that Webjet breached 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 without including compulsory fees charged by the website.

Webjet issued a public statement on Thursday acknowledging the proceedings, but denied the allegations relate to any current fee disclosure or pricing practices. The travel booking site also refuted any “widespread customer dissatisfaction” with their offerings, services or pricing.

This includes claiming “flights from $x” when the quoted price excluded the compulsory service fee and a “booking price guarantee” fee which according to the watchdog, “ranged from $34.90 to $54.90 per booking, depending on whether flights were domestic, NZ/Pacific or international”.

Webjet have allegedly engaged in false and misleading promotions of airfares. Picture: Webjet

The Webjet fees were not disclosed in the site’s social media posts, however the website, app and promotional emails did contain information about the relevant fees, according to the ACCC, who has launched federal court proceedings.

“It was typically only accessible by scrolling towards the bottom of the relevant screen, was in fine print and not sufficiently clear or prominent,” said the watchdog.

The statements were made for various periods of up to five years between November 2018 and November 2023.

The federal court action comes as the ACCC commits to turn their attention towards consumer and competition issues in the aviation sector. “We know how much Australian consumers value air travel to stay connected for work, leisure or to visit family,” said 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.”

Webjet CEO John Guscic. Picture: Supplied.

The ACCC further alleges that Webjet in 382 cases sent confirmation emails to customers despite not having yet booked the flight with the airline. In these cases Webjet is alleged to have sought additional payment to complete the booking, or offering a refund for the flight.

“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,” said Ms Cass-Gottlieb.

“We remind all businesses, whether they are online retailers or bricks and mortar stores, that they need to comply with the Australian Consumer Law by not misleading consumers and displaying prices clearly, including hidden fees and surcharges.”

The ACCC is seeking pecuniary penalties, declarations, injunctions, consumer redress, costs and other orders.

Webjet have acknowledged the legal proceedings in a statement released on Thursday. “Webjet Marketing has fully co-operated with the ACCC prior to the issuance of these proceedings and has already voluntarily and proactively undertaken a number of steps to further improve its disclosure of pricing and fees,” a spokesman said.

“So far as Webjet Marketing is aware, the ACCC concerns do not relate to its current fee disclosure and pricing practices.”

The statement which was authorised by the Board of Directors also stated, “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.”

The travel booking website has emphasised its “confidence that there is no widespread customer dissatisfaction with our offering, disclosure, service or pricing.”

Originally published as ACCC takes Webjet to court over false, misleading claims