Latest news with #AustralianConsumerLaw
The Advertiser
3 days ago
- Business
- The Advertiser
Webjet ordered to pay $9m for dodgy advertising and booking confirmations
Webjet has been ordered to pay a $9 million fine after misleading people about the cost of flights. Photo: Dan Himbrechts/AAP PHOTOS By Farid Farid Updated July 29 2025 - 8:42am, first published 8:33am Travel giant Webjet has been slapped with a $9 million fine after admitting dozens of customers were slugged with hidden fees. Subscribe now for unlimited access. or signup to continue reading All articles from our website The digital version of Today's Paper All other in your area 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. The fares were advertised on its website, in promotional emails and on social media posts. An investigation found customers were stung with hidden fees on top of advertised prices. (Dan Himbrechts/AAP PHOTOS) 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. ACCC chair Gina Cass-Gottlieb said luring people with misleading prices was a serious breach of law. (Mick Tsikas/AAP PHOTOS) 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. Australian Associated Press
Perth Now
4 days ago
- Business
- Perth Now
Webjet cops huge fine over ‘cheap' airfares
Aussies drawn in by rock bottom airfare prices only to be hit by additional charges can take some comfort after Webjet ordered to pay a huge penalty for 'misleading' advertising. On Monday, the Federal Court ordered online travel agency Webjet to pay $9m in penalties for making 'false or misleading statements about the price of flights and booking confirmations'. Webjet admitted that between 2018 and 2023 it made false or misleading statements on its website, promotional emails and social media posts when it advertised airfares that excluded compulsory fees. Webjet also admitted that between 2019 and 2024 it provided false or misleading booking confirmations to 118 consumers for flight bookings which had not actually been confirmed. Webjet then asked for additional payments of up to $2120, for these bookings, in order for consumers to be able to complete the booking. Webjet has now refunded these consumers. The Australian Competition and Consumer Commission began its investigation after a consumer complained about an airfare advertised as 'from $18', which cost almost three times that price after Webjet added its compulsory fees. An example of the misleading advertising Webjet admitted to. ACCC Credit: Supplied '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 Webjet fees comprised the 'Webjet servicing fee' and 'booking price guarantee' fee which ranged from $34.90 to $54.90 per booking, depending 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, some users had to scroll to the fine print near the bottom of the screen to see them. In its social media posts, Webjet didn't disclose the additional fees at all. Example from Webjet website advertising 'from $100' getaways. ACCC Credit: Supplied In a statement from February, when the ACCC agreement was initially approved, Webjet said 'it is important to note that, since being advised of the issues of concern by the ACCC in November 2023, Webjet Marketing has voluntarily and proactively implemented improvements to its fee disclosures'. 'Webjet Group is confident that any customer concern with its offering, disclosure, service or pricing was limited,' the statement said. '[Webjet] has always prided itself on its high levels of trust with all customers and stakeholders and has fully co-operated and positively engaged with the ACCC to resolve this matter.' The ACCC found that in the relevant period of late 2018 to late 2023 the Webjet fees represented 36 per cent of the company's total revenue. The matter was resolved outside of court when Webjet and the ACCC agreed to settle on the conditions that Webjet: 'pay a proposed total penalty of $9m; publish a corrective notice in a form agreed with the ACCC for a period of 60 days; review, maintain and continue to implement an Australian Consumer Law compliance program in an agreed form; and contribute $100,000 to the ACCC's costs'.
7NEWS
4 days ago
- Business
- 7NEWS
Webjet cops $9 million fine for misleading Australian travellers after ACCC takes action in Federal Court
Webjet has been fined $9 million for misleading Australians about the price of flights and booking confirmations. 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.'
The Advertiser
4 days ago
- Business
- The Advertiser
Bumpy ride for Webjet after $9m false advertising fine
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. 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.
Sky News AU
4 days ago
- Business
- Sky News AU
Webjet fined $9m for misleading Aussie travellers after the ACCC took the online travel agency to Federal Court
A major Australian travel company has been fined $9m for misleading Aussies about the price of flights and booking confirmations after an investigation from the consumer watchdog. The Australian Competition and Consumer Commission (ACCC) in November took online travel agency (OTA) Webjet to Federal Court for misleading advertisements it ran between 2018 and 2023 that excluded compulsory fees. Webjet also admitted it misled 118 customers between 2019 and 2024 by providing flight bookings for travel plans it had not actually confirmed. The OTA then asked for additional payments upwards of $2120 for customers to complete the booking. Webjet has since handed back this money. ACCC chair Gina Cass-Gottlieb said the investigation into Webjet began after a traveller complained about a ticket price advertised as 'from $18' ended costing three times as much after 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,' Ms 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 OTA hit customers with a 'servicing fee' and a 'booking price guarantee' fee ranging between $34.90-$54.90 per booking. These additional fees were not disclosed in Webjet's social media posts and varied depending on where the traveller was heading. Some users had to scroll to the fine print near the bottom of the screen in their booking to see information about the fees. 'Retailers must ensure their advertised prices are accurate,' Ms Cass-Gottlieb said. "They should clearly disclose additional fees and charges." These fees made up 36 per cent of Webjet's total revenue from November 2018 to November 2023. The consumer watchdog noted that Webjet had co-operated with the ACCC throughout the investigation, admitted liability and agreed to make joint submissions to the Court about orders, including the penalty.
