Online travel booking giant Webjet is being hauled to court by the consumer watchdog over allegations it misled customers about flight prices.The Australian Competition & Consumer Commission (ACCC) claims Webjet failed to include hidden booking fees, which ranged between $34.90 and $54.90, when quoting flights online.The watchdog has kicked off proceedings in the Federal Court against Webjet and will allege the company made "false and misleading representations" to consumers booking tickets.
An example of Webjet's social media post showing promoted prices for airfares shared by the ACCC. (Supplied/ACCC)It's alleged Webjet breached consumer law by advertising flight prices on its app, website, on marketing emails and on social media which omitted compulsory fees.These advertisements were published during a five-year period between November 2018 and November 2023, the ACCC said.The ACCC said the fees were not disclosed on social media posts, and on the website, app and in promotional emails, the fees were only accessible in fine print at the bottom of the screen."We know how much Australian consumers value air travel to stay connected for work, leisure or to visit family," ACCC chair Gina Cass-Gottlieb said.
The ACCC said webjet misled customers by not quoting the bookin fees. (Webjet)"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."Webjet is also accused of taking payments for flights and sending confirmation emails when it had not booked the flight with the airline on 382 occasions.In these cases, the ACCC claims Webjet allegedly asked for more payment to complete the booking or offered a refund.It is alleged these bookings were made between November 2018 and June 2024.
The ACCC shared this example of Webjet's website advertising minimum prices. (Supplied/ACCC)"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," 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."Travel destinations where the Australian dollar is strong right nowView GalleryThe ACCC said it was seeking a number of penalties, declarations, injunctions, consumer redress, costs and other orders in the court case.In a statement shared to 9news.com.au Webjet Marketing Pty Ltd said it had "undertaken a number of steps to further improve its disclosure of pricing and fees"."So far as Webjet Marketing is aware, the ACCC concerns do not relate to its current fee disclosure and pricing practices," it said in a statement."Millions of customers have chosen to book through Webjet Marketing during the period in question and we have very rarely been contacted by customers complaining about our disclosure of fees."Webjet Group is confident there is no widespread customer dissatisfaction with our offering, disclosure, service or pricing."