Travel giant Webjet has been hit with a 9 million dollar fine after admitting to failing to include mandatory fees in some of its advertised airfare prices and providing false booking confirmations. The case was brought to court by the Australian Competition and Consumer Commission, which accused Webjet of making misleading claims in promotional emails and social media posts from 2018 to 2023.
Webjet also acknowledged that it issued false or misleading booking confirmations to 118 customers between 2019 and 2024. These customers were asked to pay up to 2,120 dollars to complete flights that were not actually confirmed. The company has since refunded those customers.
The ACCC launched its investigation after a customer complained that an airfare advertised at 18 dollars ended up costing nearly three times that amount once all mandatory fees were added. These fees included charges such as the “Webjet servicing fee” and “booking price guarantee,” ranging from 34.90 to 54.90 dollars per booking depending on the destination.
While fees were disclosed on Webjet’s website, app, and most emails, the company’s social media posts failed to mention these additional charges, leading to the misleading impression of lower prices.
ACCC Chair Gina Cass-Gottlieb emphasized that retailers must ensure their advertised prices are accurate and fully disclose all additional fees. She pointed out that Webjet’s fees accounted for 36 percent of its total revenue between November 2018 and November 2023, highlighting the significance of transparent pricing practices in the travel industry.
+ There are no comments
Add yours