The Federal Court has ordered online travel agency Webjet to pay $9 million (USD 6 million) in penalties for making false or misleading statements about airfare prices and booking confirmations, following enforcement action by the Australian Competition and Consumer Commission (ACCC).
Webjet admitted that between 2018 and 2023 it promoted airfares that excluded compulsory fees in its advertising, including on its website, in promotional emails, and through social media. The company further admitted that from 2019 to 2024 it issued false or misleading booking confirmations to 118 consumers, advising them that their flights were confirmed when they were not. In these cases, Webjet later requested additional payments of up to $2,120 to finalise the bookings. All affected consumers have since been refunded.
The ACCC investigation began after a consumer complained that a flight advertised as costing “from $18” ended up costing nearly three times as much once Webjet’s compulsory 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,” 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.”
The compulsory charges, including a “Webjet servicing fee” and a “booking price guarantee” fee, ranged from $34.90 to $54.90 per booking, depending on the flight destination. These fees represented 36 per cent of Webjet’s total revenue between 1 November 2018 and 13 November 2023.
While Webjet’s website, app, and most emails contained some disclosure of the extra fees, many users had to scroll down to fine print at the bottom of the page to find them. In social media advertising, the fees were not disclosed at all.
The Federal Court’s orders require Webjet to:
- pay the $9 million penalty,
- review and strengthen its compliance program, and
- make a contribution towards the ACCC’s costs.
Webjet co-operated with the ACCC’s investigation, admitted liability, and made joint submissions with the regulator regarding the penalty and related orders.
The proceedings form part of the ACCC’s ongoing enforcement priorities, which include addressing misleading surcharging practices, add-on costs, and deceptive pricing in the retail and travel sectors.
Background
Webjet is a wholly owned subsidiary of Webjet Group Limited, a publicly listed company on the ASX. Through its website and app, Webjet provides consumers with the ability to compare and book flights, hotels, car rentals, and travel insurance from a range of airlines and service providers.
The ACCC commenced proceedings against Webjet Marketing Pty Ltd in the Federal Court on 28 November 2024.
