Webjet fined $9m for misleading Aussie travellers after the ACCC took the online travel agency to Federal Court
The Australian Competition and Consumer Commission (ACCC) in November took online travel agency (OTA) Webjet to Federal Court for misleading advertisements it ran between 2018 and 2023 that excluded compulsory fees.
Webjet also admitted it misled 118 customers between 2019 and 2024 by providing flight bookings for travel plans it had not actually confirmed.
The OTA then asked for additional payments upwards of $2120 for customers to complete the booking.
Webjet has since handed back this money.
ACCC chair Gina Cass-Gottlieb said the investigation into Webjet began after a traveller complained about a ticket price advertised as 'from $18' ended costing three times as much after fees were added.
'We took this case because we considered that Webjet used misleading pricing by excluding or not adequately disclosing compulsory fees in its ads,' Ms 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.'
The OTA hit customers with a 'servicing fee' and a 'booking price guarantee' fee ranging between $34.90-$54.90 per booking.
These additional fees were not disclosed in Webjet's social media posts and varied depending on where the traveller was heading.
Some users had to scroll to the fine print near the bottom of the screen in their booking to see information about the fees.
'Retailers must ensure their advertised prices are accurate,' Ms Cass-Gottlieb said.
"They should clearly disclose additional fees and charges."
These fees made up 36 per cent of Webjet's total revenue from November 2018 to November 2023.
The consumer watchdog noted that Webjet had co-operated with the ACCC throughout the investigation, admitted liability and agreed to make joint submissions to the Court about orders, including the penalty.
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