The Australian Competition and Consumer Commission (ACCC) has launched Federal Court proceedings against Webjet Marketing Pty Ltd, claiming the online travel giant misled consumers about flight prices and bookings.
According to the ACCC, Webjet advertised flights with statements like “flights from $x” without including compulsory fees such as the “Webjet servicing fee” and a “booking price guarantee” fee. In other words, flight prices that were simply too good to be true.
These fees, ranging from $34.90 to $54.90 per booking depending on the flight route, were often hidden in fine print, only visible after scrolling to the bottom of the booking page – and this breached Australian Consumer Law, says the Commission.
The alleged misleading practices were carried out across Webjet’s website, app, marketing emails and social media channels between November 2018 and November 2023.
“We know how much Australian consumers value air travel to stay connected for work, leisure or to visit family. During this time of cost pressures, many consumers are carefully considering travel arrangements and seeking to save money,” ACCC Chair Gina Cass-Gottlieb said.
“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, Webjet is accused of confirming flight bookings to customers while failing to secure the tickets with airlines for 382 transactions over five years.
Customers were later asked to pay more or offered a refund, potentially disrupting their travel plans.
The ACCC is seeking penalties, consumer redress and other orders, aiming to ensure transparency and fair practices for Australian travellers.
“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,” Ms Cass-Gottlieb said.
“The ACCC is currently prioritising consumer and competition issues in the aviation sector as well as conduct in the digital economy.
“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.”
OTA responds
Webjet said in a statement it is cooperating with the ACCC, improving fee transparency and has received few complaints.
“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.”
