The Australian Competition and Consumer Commission (ACCC) has initiated legal proceedings against Webjet Travel Group, accusing the company of making false and misleading claims regarding flight prices and bookings.
The case, filed in the Federal Court, alleges that Webjet misled consumers by advertising flight prices that excluded compulsory fees, resulting in higher-than-expected costs for customers.
Webjet, an online travel booking platform, allows users to compare and book flights, hotels, car rentals, and travel insurance.
The ACCC claims that Webjet’s advertisements, including on its website, app, social media, and in marketing emails, featured price quotes such as “flights from $x” that did not include additional charges.
These charges, described as the ‘Webjet servicing fee’ and ‘booking price guarantee’ fee, ranged from $34.90 to $54.90, depending on the type of flight.
The ACCC argues that these fees were not clearly disclosed in many of Webjet’s promotional materials. While information about the fees was available on Webjet’s website and app, it was often buried in fine print or placed in less visible areas of the pages. As a result, consumers were misled into thinking they were getting a lower price than what was actually required to complete a booking.
The Commission also alleges that Webjet confirmed bookings for 382 customers between November 2018 and June 2024, only to later inform them that the flight had not been secured. In some cases, Webjet asked consumers for additional payments or offered refunds, even though the bookings had been confirmed and payments processed.
ACCC Chair Gina Cass-Gottlieb emphasised the importance of clear and truthful pricing, especially as many Australians carefully consider travel costs during these financially challenging times. She also noted that Webjet’s actions left some consumers facing the difficult choice of paying extra fees or cancelling travel plans.
The ACCC is seeking penalties, declarations, injunctions, and compensation for affected consumers.
