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Webjet pays $9m over fake airfare ads
Webjet pays $9m over fake airfare ads

The Australian

time3 days ago

  • Business
  • The Australian

Webjet pays $9m over fake airfare ads

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. Picture: ACCC '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. Picture: ACCC 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'. Robert White Cadet Robert got his start as an Editorial Assistant at the Daily Telegraph in 2024 before entering the Newscorp cadet program. With a background in history and law Robert has a passion for politics and crime reporting as well as telling meaningful stories. @white_robb73416 Robert White

Webjet cops $9m over 'false or misleading' airfare ads
Webjet cops $9m over 'false or misleading' airfare ads

News.com.au

time4 days ago

  • Business
  • News.com.au

Webjet cops $9m over 'false or misleading' airfare ads

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. '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. 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'.

‘Trusted name': Iconic airline makes comeback after more than 20 years – as an AI-powered travel agency
‘Trusted name': Iconic airline makes comeback after more than 20 years – as an AI-powered travel agency

News.com.au

time4 days ago

  • Business
  • News.com.au

‘Trusted name': Iconic airline makes comeback after more than 20 years – as an AI-powered travel agency

More than 20 years after closing its doors, Ansett is back – this time, as an AI-powered travel agency. Ansett Airlines – later Ansett Australia – served as the country's second-largest since 1936 before it was placed into voluntary administration and ceased operations in 2002, resulting in a loss of 16,000 jobs. Before its closure, the airline was once a mainstay of Australian culture as one of the major sponsors of the AFL and the major sponsor for the 2000 Sydney Olympics. Last month, Melbourne entrepreneur Constatine Frantzeskos announced the airline's return as an AI-powered travel agency after 'the famous Ansett trademark had lapsed'. 'Ansett is back – reborn as Australia's first truly AI-run travel agency,' he wrote on LinkedIn. 'I registered the trademark, created a fleet of AI agents, and – thanks to a tech integration with Travlr – have now turned Ansett into a one-founder online travel agency.' The Ansett Travel website is powered by AI and designed to offer a 'personalised' experience. 'We use a combination of large language models, recommendation systems, and predictive pricing engines,' the website read. 'Our AI helps personalise your journey, surface better deals faster, and automate the back-end processes that traditional OTAs still handle manually.' According to the company's website, the travel agency operates with 500 airlines and three million hotels and aims to '(revive) a trusted name' and '(give) it a new identity'. Speaking to The Sydney Morning Herald, Mr Frantzeskos said Ansett Travel was 'building the personal travel agent of the future'. According to the website, the company is not 'trading on nostalgia'. 'The Ansett name still holds meaning – especially for Australians who remember a time when travel felt innovative, considered, personal, and premium,' the website read. 'We're not trading on nostalgia – we're reviving a trusted name and giving it a new identity: intelligent, intuitive, and value-driven.'

Man arrested for threatening couple in dispute over Japan tours
Man arrested for threatening couple in dispute over Japan tours

Free Malaysia Today

time15-07-2025

  • Free Malaysia Today

Man arrested for threatening couple in dispute over Japan tours

Police said the suspect is known to the victims, a couple who run a travel agency, and is from a different travel agency. PETALING JAYA : Police have arrested a 36-year-old man for allegedly threatening a couple who operate a travel agency after a business dispute about tour packages to Japan. Sepang police chief Norhizam Bahaman said the incident took place at a restaurant in Dengkil on July 22 last year. Norhizam said the suspect is known to the victims and is from a different travel agency. 'The couple lodged a police report, and we have opened an investigation paper,' he said in a statement. Police will apply for a remand order tomorrow. When contacted, Norhizam confirmed that the suspect was linked to a part-time tour guide who claimed she was threatened with death and beaten by a fellow Malaysian tour operator at a rented house in Japan on Jan 24. However, the man was not the same person involved in the incident in Japan. Harian Metro reported today that the woman said the tour operator slammed her head against a bed frame, pulled her hair, and stomped on her with his boots, leaving her covered in bruises. The woman said she lodged a police report in Japan and reported the matter to the Malaysian high commission in Tokyo. She subsequently filed a report at the Sepang police headquarters and underwent medical examinations upon returning to Malaysia.

More people in Japan planning to travel abroad during summer
More people in Japan planning to travel abroad during summer

NHK

time15-07-2025

  • Business
  • NHK

More people in Japan planning to travel abroad during summer

A major Japanese travel agency says more people are likely to leave the country to travel abroad over the summer this year than last year. JTB based its forecast on a survey, flight reservations and other data. It says some 2.44 million people will go abroad for at least one night between July 15 and August 31. That's up 20.8 percent from last summer. The agency says the yen's depreciation has somewhat slowed and summer bonuses are on an upward trend, helping to encourage more overseas travel. South Korea and Europe are the most popular destinations, followed by Taiwan and Southeast Asia. The US mainland is also gaining popularity. Compared to domestic travel, overseas travel had been slow to recover after the pandemic. But, the agency says, if its projections come true, international trips are expected to recover to about 90 percent of the pre-pandemic 10-year average. JTB also forecasts that 72.2 million people will go on domestic trips this summer, up 0.3 percent from last year. The agency says overseas travel demand has clearly recovered. It adds that travel styles are diversifying and that destinations are spreading, not only to Asia but also Europe and the United States, as more people are willing to spend time and money to travel further.

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