Bumpy ride for Webjet after $9m false advertising fine
The Federal Court ordered the flight comparison site to pay $9 million on Monday for making false or misleading statements about the price of flights and booking confirmations.
In a case brought by the Australian Competition and Consumer Commission (ACCC) in November 2024, Webjet acknowledged that between 2018 and 2023 it advertised airfares that excluded compulsory fees ranging from about $35 to $55.
The fares were advertised on its website, in promotional emails and on social media posts.
The Webjet fees represented 36 per cent of the ASX-listed firm's total revenue in the period from November 1, 2018 to November 13, 2023.
"Seeking to lure in customers with prices that don't tell the whole story is a serious breach of the Australian Consumer Law," the commission's chair Gina Cass-Gottlieb said.
"Retailers must ensure their advertised prices are accurate. They should clearly disclose additional fees and charges."
The ACCC commenced its investigation after one consumer complained about an airfare advertised for $18, which ended up costing almost three times that amount after the compulsory fees were added.
The Webjet fees comprised the "Webjet servicing fee" and "booking price guarantee" fee, which ranged from $34.90 to $54.90 per booking.
They depended on whether the flights were domestic, to New Zealand and the Pacific or other international destinations.
While Webjet's website, app and most emails contained information about the additional fees, they were in the fine print near the bottom and not clearly communicated to customers.
In its social media posts, Webjet didn't disclose the additional fees at all.
The commission said Webjet admitted liability and it would also foot the bill for some of the ACCC's legal costs.
The online travel agency said in a statement on Monday it had come to an agreement with the commission in February.
"As previously disclosed to the ASX, the parties reached agreement over the proceedings in February 2025. The Federal Court's approval formally disposes of the proceeding," Webjet said.
Travel giant Webjet has been slapped with a $9 million fine after admitting dozens of customers were slugged with hidden fees.
The Federal Court ordered the flight comparison site to pay $9 million on Monday for making false or misleading statements about the price of flights and booking confirmations.
In a case brought by the Australian Competition and Consumer Commission (ACCC) in November 2024, Webjet acknowledged that between 2018 and 2023 it advertised airfares that excluded compulsory fees ranging from about $35 to $55.
The fares were advertised on its website, in promotional emails and on social media posts.
The Webjet fees represented 36 per cent of the ASX-listed firm's total revenue in the period from November 1, 2018 to November 13, 2023.
"Seeking to lure in customers with prices that don't tell the whole story is a serious breach of the Australian Consumer Law," the commission's chair Gina Cass-Gottlieb said.
"Retailers must ensure their advertised prices are accurate. They should clearly disclose additional fees and charges."
The ACCC commenced its investigation after one consumer complained about an airfare advertised for $18, which ended up costing almost three times that amount after the compulsory fees were added.
The Webjet fees comprised the "Webjet servicing fee" and "booking price guarantee" fee, which ranged from $34.90 to $54.90 per booking.
They depended on whether the flights were domestic, to New Zealand and the Pacific or other international destinations.
While Webjet's website, app and most emails contained information about the additional fees, they were in the fine print near the bottom and not clearly communicated to customers.
In its social media posts, Webjet didn't disclose the additional fees at all.
The commission said Webjet admitted liability and it would also foot the bill for some of the ACCC's legal costs.
The online travel agency said in a statement on Monday it had come to an agreement with the commission in February.
"As previously disclosed to the ASX, the parties reached agreement over the proceedings in February 2025. The Federal Court's approval formally disposes of the proceeding," Webjet said.
Travel giant Webjet has been slapped with a $9 million fine after admitting dozens of customers were slugged with hidden fees.
The Federal Court ordered the flight comparison site to pay $9 million on Monday for making false or misleading statements about the price of flights and booking confirmations.
In a case brought by the Australian Competition and Consumer Commission (ACCC) in November 2024, Webjet acknowledged that between 2018 and 2023 it advertised airfares that excluded compulsory fees ranging from about $35 to $55.
The fares were advertised on its website, in promotional emails and on social media posts.
The Webjet fees represented 36 per cent of the ASX-listed firm's total revenue in the period from November 1, 2018 to November 13, 2023.
"Seeking to lure in customers with prices that don't tell the whole story is a serious breach of the Australian Consumer Law," the commission's chair Gina Cass-Gottlieb said.
"Retailers must ensure their advertised prices are accurate. They should clearly disclose additional fees and charges."
The ACCC commenced its investigation after one consumer complained about an airfare advertised for $18, which ended up costing almost three times that amount after the compulsory fees were added.
The Webjet fees comprised the "Webjet servicing fee" and "booking price guarantee" fee, which ranged from $34.90 to $54.90 per booking.
They depended on whether the flights were domestic, to New Zealand and the Pacific or other international destinations.
While Webjet's website, app and most emails contained information about the additional fees, they were in the fine print near the bottom and not clearly communicated to customers.
In its social media posts, Webjet didn't disclose the additional fees at all.
The commission said Webjet admitted liability and it would also foot the bill for some of the ACCC's legal costs.
The online travel agency said in a statement on Monday it had come to an agreement with the commission in February.
"As previously disclosed to the ASX, the parties reached agreement over the proceedings in February 2025. The Federal Court's approval formally disposes of the proceeding," Webjet said.
Travel giant Webjet has been slapped with a $9 million fine after admitting dozens of customers were slugged with hidden fees.
The Federal Court ordered the flight comparison site to pay $9 million on Monday for making false or misleading statements about the price of flights and booking confirmations.
In a case brought by the Australian Competition and Consumer Commission (ACCC) in November 2024, Webjet acknowledged that between 2018 and 2023 it advertised airfares that excluded compulsory fees ranging from about $35 to $55.
The fares were advertised on its website, in promotional emails and on social media posts.
The Webjet fees represented 36 per cent of the ASX-listed firm's total revenue in the period from November 1, 2018 to November 13, 2023.
"Seeking to lure in customers with prices that don't tell the whole story is a serious breach of the Australian Consumer Law," the commission's chair Gina Cass-Gottlieb said.
"Retailers must ensure their advertised prices are accurate. They should clearly disclose additional fees and charges."
The ACCC commenced its investigation after one consumer complained about an airfare advertised for $18, which ended up costing almost three times that amount after the compulsory fees were added.
The Webjet fees comprised the "Webjet servicing fee" and "booking price guarantee" fee, which ranged from $34.90 to $54.90 per booking.
They depended on whether the flights were domestic, to New Zealand and the Pacific or other international destinations.
While Webjet's website, app and most emails contained information about the additional fees, they were in the fine print near the bottom and not clearly communicated to customers.
In its social media posts, Webjet didn't disclose the additional fees at all.
The commission said Webjet admitted liability and it would also foot the bill for some of the ACCC's legal costs.
The online travel agency said in a statement on Monday it had come to an agreement with the commission in February.
"As previously disclosed to the ASX, the parties reached agreement over the proceedings in February 2025. The Federal Court's approval formally disposes of the proceeding," Webjet said.
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