The ACCC has commenced proceedings in the Federal Court against online travel booking site Webjet Marketing Pty Ltd for allegedly making false and misleading representations to consumers about flight prices and bookings.
Webjet's app and website offers travel-related products and services to consumers, including from different airlines. Consumers can compare and book flights, hotels, car rental and travel insurance through the Webjet website and app.
The ACCC alleges Webjet breached the 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 which omitted compulsory fees charged by Webjet.
The statements included "flights from $x" when the price quoted excluded Webjet's compulsory 'Webjet servicing fee' and 'booking price guarantee' fee which ranged from $34.90 to $54.90 per booking, depending on whether the flights were domestic, NZ/Pacific flights or other international flights.
These statements were made for various periods of up to five years between November 2018 to November 2023.
The Webjet Fees were not disclosed in Webjet's social media posts. Although the Webjet Website, Webjet App and most promotional emails contained information about the Webjet Fees, it was typically only accessible by scrolling towards the bottom of the relevant screen, was in fine print and not sufficiently clear or prominent.
"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. 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," ACCC Chair Gina Cass-Gottlieb said.
Webjet is also alleged to have breached consumer law by displaying a confirmation page online and sending a confirmation email after taking payment for a completed flight booking when in fact, in respect of 382 bookings, it had not booked the flight with the airline.
In these cases, Webjet later 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.
Some consumers may have made and paid for other travel arrangements on the basis of the confirmation so may have had to choose between paying more money or cancelling other arrangements at a potential loss.
It is alleged that Webjet made these misleading representations in respect of 382 bookings over more than 5 years, between at least 1 November 2018 and 25 June 2024.
"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."
The ACCC is seeking pecuniary penalties, declarations, injunctions, consumer redress, costs and other orders.
Background
Webjet is a wholly owned subsidiary of Webjet Group Limited (ASX: WJL) and operates the online travel agent arm of the company, manages the Webjet brand, and carries out marketing operations via email and social media.
Example of social media post showing flights advertised as "from $x*"
Example of website showing promoted prices for airfares advertised as "from $x*"
Concise statement
ACCC v Webjet - Concise statement ( PDF 532.98 KB )
This document contains the ACCC's initiating court document in relation to this matter. We will not be uploading further documents in the event these initial documents are subsequently amended.
