November 28th 2024.
Webjet, a popular online travel booking company, is facing legal action from the consumer watchdog for allegedly deceiving customers about flight prices. The Australian Competition & Consumer Commission (ACCC) claims that Webjet did not include mandatory booking fees, ranging from $34.90 to $54.90, in their online flight quotes. The ACCC has taken the matter to the Federal Court, accusing the company of making false and misleading representations to customers who were booking tickets.
The watchdog alleges that Webjet violated consumer law by promoting flight prices on their app, website, social media, and marketing emails without mentioning the mandatory fees. According to the ACCC, this misleading advertising took place over a five-year period, from November 2018 to November 2023. The fees were not disclosed on social media posts, and on the website, app, and promotional emails, they were only mentioned in small font at the bottom of the screen.
Gina Cass-Gottlieb, the chair of the ACCC, emphasized the importance of air travel for Australian consumers, especially during these uncertain times. She stated that many people are carefully considering their travel arrangements and trying to save money. Cass-Gottlieb also pointed out that when a company advertises the lowest price, it must be the true minimum price, and not subject to additional fees and charges.
The ACCC has accused Webjet of accepting payments for flights without actually booking them with the airline on 382 occasions. In these cases, the commission claims that Webjet either asked for more money to complete the booking or offered a refund. These incidents allegedly occurred between November 2018 and June 2024.
Cass-Gottlieb expressed concern about this behavior, stating that customers were misled into thinking that their booking was confirmed, and some ended up having to pay more to complete the process. She also mentioned that the ACCC is currently prioritizing consumer and competition issues in the aviation sector, as well as conduct in the digital economy. Cass-Gottlieb reminded all businesses, whether online or physical, to comply with the Australian Consumer Law and be transparent about prices, including any hidden fees and surcharges.
The ACCC has requested several penalties, declarations, injunctions, consumer redress, costs, and other orders from the court in this case. In response, Webjet Marketing Pty Ltd, a subsidiary of the Webjet Group, released a statement on 9news.com.au stating that they have taken steps to improve their disclosure of pricing and fees. The company also mentioned that they are not aware of any current issues with their fee disclosure and pricing practices. According to Webjet, millions of customers have booked through them during the period in question, and they have rarely received complaints about their pricing and service. They remain confident that their offering, disclosure, service, and pricing are in line with customer expectations.
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