Webjet, an Australian online travel agency, hit with a big AUD $9 million fine. The Australian Competition and Consumer Commission (ACCC) issued this fine for misleading consumers on the price of airfares. Webjet admitted to supplying false or misleading booking confirmations. It is this admission that resulted in a $1.85 million fine after it hoodwinked 118 customers from 2019 to 2024 for flights that never truly existed. This sneaky tactic forced consumers to pay hundreds of dollars more—up to $2,120 in some cases—to finalize their reservation.
As a result, the ACCC sued Webjet. They noted the company’s ads often featured rates that did not reflect the full price, excluding required fees. At the end of the day, fares advertised on flight for as little as $18. Many travelers end up paying 3x that much due to these hidden fees. The court held that this behavior misled consumers and was therefore in breach of the Australian Consumer Law.
Webjet’s Admission and Cooperation
As a positive step toward accountability, Webjet accepted liability for its wrong conduct and has fully refunded all impacted consumers. The company acknowledged the importance of this matter and fully cooperated with the ACCC throughout the investigation. They further consented to filing joint recommendations with the court as to any penalties assessed. In addition, Webjet has agreed to pay NZ$100,000 towards the ACCC’s costs for this action.
Webjet spokesperson stated, “It has always prided itself on its high levels of trust with all customers and stakeholders and has fully cooperated and positively engaged with the ACCC to resolve this matter.” The company voiced optimism that customer complaints about the service were few and far between.
Financial Impact and Future Compliance
From November 1, 2018 until November 13, 2023, all those fees made up 36 percent of Webjet’s overall revenue. The content of this fine reflects the importance of cleaning up and protecting our environment. It further serves as a wake-up call to them to re-evaluate their pricing practices. Webjet will implement a comprehensive compliance program as one of the conditions of the penalty. This Australian Consumer Law compliance program is intended to prevent any repeat violations from occurring.
Gina Cass-Gottlieb, Chair of the ACCC, stated, “Retailers must ensure their advertised prices are accurate. They should clearly disclose additional fees and charges.” She underscored that these confusing pricing practices are illegal under consumer law. Yet these practices pose a direct threat to the cooperative spirit that underpins the practice of real estate.
Commitment to Transparency
In light of these revelations, Webjet has agreed to make modifications to improve its disclosures of fees on its own accord. The company committed to establishing and enforcing a compliance policy designed to ensure consumer protection standards are observed. These are needed, but they represent a fundamental commitment to transparency in pricing and customer service that must continue.
“We took this case because we considered that Webjet used misleading pricing by excluding or not adequately disclosing compulsory fees in its ads,” said Cass-Gottlieb. With the implementation of this initiative, this initiative is likely to facilitate improved trust between Webjet and its customers and improve Webjet’s compliance with legal requirements.
