The Federal Court has imposed a $9 million penalty on Webjet for making false or misleading statements regarding airfare prices and booking confirmations. The travel services provider admitted to misleading consumers by advertising airfares that did not include compulsory fees via its website, promotional emails and social media posts between 2018 and 2023.

From 2019 to 2024, Webjet also issued false or misleading booking confirmations to 118 consumers for flight bookings that were not actually confirmed. In some cases, Webjet requested additional payments, amounting to as much as $2,120, from consumers to finalise bookings. The company has since refunded the affected consumers.

The Australian Competition and Consumer Commission (ACCC) initiated its investigation following a consumer complaint about an airfare advertised as ‘from $18’, which escalated to nearly three times the initial price after additional fees were applied. These fees included a ‘Webjet servicing fee’ and a ‘booking price guarantee’ fee, which ranged from $34.90 to $54.90 per booking.

ACCC Chair Gina Cass-Gottlieb said: “We took this case because we considered that Webjet used misleading pricing by excluding or not adequately disclosing compulsory fees in its ads.” She further noted, “Seeking to lure in customers with prices that don’t tell the whole story is a serious breach of the Australian Consumer Law.”

Webjet’s fees accounted for 36% of its total revenue from 1 November 2018 to 13 November 2023. The company cooperated with the ACCC, admitting liability and agreeing to make joint submissions to the Court regarding orders, including the penalty. The Court has also mandated that Webjet review its compliance program and contribute to the ACCC’s costs.

Cass-Gottlieb said: “Retailers must ensure their advertised prices are accurate. They should clearly disclose additional fees and charges.”

Webjet operates as a wholly owned subsidiary of Webjet Group Limited, which is publicly listed on the Australian Securities Exchange (ASX). The company offers a range of travel-related products and services, including flights, hotels, car rentals, and travel insurance through its website and app.

The ACCC has highlighted its ongoing priorities, which include tackling misleading surcharging practices and other add-on costs in the supermarket and retail sectors.