Webjet cops $9 million fine for misleading Australian travellers after ACCC takes action in Federal Court
The order was handed down by the Federal Court following an investigation by the Australian Competition and Consumer Commission (ACCC).
Webjet, a popular online travel agency, admitted it had excluded compulsory fees in airfare ads posted on its website, in emails and social media posts between 2018 and 2023.
It also conceded that between 2019 and 2024 it misled 118 customers by confirming flight bookings which had not actually been locked away.
'Webjet later asked for additional payments of up to $2120 from travellers to complete the booking,' the ACCC said on Monday, adding consumers had since been refunded.
'Serious breach'
The consumer watchdog started asking questions after a customer complained about a flight advertised 'from $18' ultimately costing three times that once Webjet tacked on compulsory fees.
Webjet's extra charges included a 'servicing fee' and 'booking price guarantee', and cost travellers as much as $54.90 extra per booking, depending on the destination.
The agency's fees accounted for 36 per cent of its total revenue between November 2018 and November 2023, the ACCC said.
'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 consumer watchdog alleged that while some of Webjet's advertisements and platforms had details about the fees, others either made users scroll down to the fine print or did not have any indication at all.
'Retailers must ensure their advertised prices are accurate,' Cass-Gottlieb said. 'They should clearly disclose additional fees and charges.'
The ACCC said Webjet had cooperated during proceedings, including admitting liability, after it took action in the Federal Court.
'The parties reached agreement over the proceedings in February 2025,' Webjet said in a statement on Monday.
'The Federal Court's approval formally disposes of the proceeding.'
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