The Federal Court has ordered online travel agency Webjet to pay $9 million in penalties after finding the company made false or misleading statements about the price of flights and the status of bookings, following proceedings brought by the Australian Competition and Consumer Commission.
Webjet admitted that between 2018 and 2023 it advertised airfares that excluded compulsory fees on its website, and in promotional emails and social media posts. The company also admitted that between 2019 and 2024 it provided false or misleading booking confirmations to 118 consumers for flights that had not actually been confirmed; in some cases Webjet later asked for additional payments of up to $2,120 to complete the booking. Those consumers have since been refunded.
The ACCC said it commenced 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 additional payments were charged as a “Webjet servicing fee” and a “booking price guarantee” fee, which ranged from $34.90 to $54.90 per booking depending on whether the travel was domestic, to New Zealand and the Pacific, or to other international destinations.
The ACCC found that while Webjet’s website, app and most emails contained information about the additional fees, some users had to scroll to fine print near the bottom of the screen to see them. In its social media posts the agency said Webjet did not disclose the additional fees at all.
“Retailers must ensure their advertised prices are accurate. They should clearly disclose additional fees and charges,” Ms Cass-Gottlieb said.
The regulator also noted the Webjet fees represented 36 per cent of Webjet’s total revenue in the period from 1 November 2018 to 13 November 2023.
Webjet co‑operated with the ACCC, admitted liability and agreed to make joint submissions about court orders, including the penalty. The Court made declarations and other orders proposed by the parties, including that Webjet review its compliance program and pay a contribution to the ACCC’s costs.
Webjet Marketing Pty Ltd is a wholly owned subsidiary of ASX‑listed Webjet Group Limited and operates the company’s online travel agency, marketing and Webjet brand. Its website and app allow consumers to compare and book flights, hotels, car hire and travel insurance from a range of providers.
The ACCC instituted proceedings against Webjet on 28 November 2024. The regulator has said misleading surcharging and other add‑on costs remain a priority area of enforcement, along with consumer and fair trading concerns in the supermarket and retail sectors.
