Webjet has been hit with $9 million in penalties after the Federal Court found the online travel agency made false or misleading statements about flight prices and booking confirmations.
The Australian Competition and Consumer Commission (ACCC) launched the case after receiving complaints about Webjet’s pricing tactics between 2018 and 2024. In one instance, a flight advertised “from $18” ended up costing nearly three times more after fees were added.
Webjet admitted it promoted airfares without including compulsory charges, comprising a “servicing fee” and a “booking price guarantee” fee. These added between $34.90 and $54.90 per booking, depending on the destination. In some cases, these extra charges weren’t disclosed at all – especially in social media posts.
Between 2019 and 2024, Webjet also sent misleading booking confirmations to 118 customers for flights that hadn’t been secured, only to later request extra payments of up to $2,120 to finalise the bookings. All affected customers have since been refunded.
The fees in question made up more than a third of Webjet’s revenue between November 2018 and November 2023.
Webjet co-operated with the ACCC and agreed to joint court submissions, including a compliance review and a contribution to the ACCC’s costs.
The case highlights the importance of pricing transparency in travel sales.
“We took this case because we considered that Webjet used misleading pricing by excluding or not adequately disclosing compulsory fees in its ads,” ACCC Chair Gina Cass-Gottlieb said.
“Seeking to lure in customers with prices that don’t tell the whole story is a serious breach of the Australian Consumer Law.
“Retailers must ensure their advertised prices are accurate. They should clearly disclose additional fees and charges.”
