The Australian Competition and Consumer Commission (ACCC) is taking Webjet to federal court over claims the travel company failed to disclose extra fees and charges on advertised flights.
The alleged breaches took place in the five years leading up to November 2023. The ACCC alleges that Webjet promoted “cheap flights” without disclosing additional fees, breaching Australian Consumer Law.
The allegations centre around marketing material published on various platforms, including websites, mobile apps, social media channels, and emails.
The ACCC says Webjet frequently advertised flights with statements like “flights from X” which attracted consumers to low fares.
The attractive pricing failed to recognise that consumers would need to pay a booking price guarantee which would range from $34.90 to $54.90, depending on the destination.
ACCC chair Gina Cass-Gottlieb stressed the importance of transparent pricing.
“We know how much Australian consumers value air travel to stay connected for work, leisure or to visit family. During this time of cost pressures, many consumers are carefully considering travel arrangements and seeking to save money.”
“A statement about the lowest price must be a true minimum price, not a price subject to further fees and charges before a booking can be made.”
The fees were reportedly not disclosed in Webjet’s social posts.
As well as misleading advertising, Webjet is also accused of failing to honour flight bookings.
In nearly 400 instance, Webjet allegedly displayed flight confirmation pages after taking payment from customers but did not book the flights.
The ACCC claims that Webjet demanded additional payments to complete the bookings, or offered refunds.
Cass-Gottlieb said this caused significant stress to consumers who had their travel plans disrupted.
The case is being heard by the Federal Court on Thursday.
As published in The Sydney Morning Herald, Webjet released a statement saying it is working with the ACCC following the allegations.
“Webjet Marketing has already voluntarily and proactively undertaken a number of steps to further improve its disclosure of pricing and fees. So far as Webjet Marketing is aware, the ACCC concerns do not relate to its current fee disclosure and pricing practices,” the company said.
“Webjet Marketing takes compliance with Australian Consumer Law extremely seriously and has always prided itself on its high levels of trust with all stakeholders, especially our customers.
“Millions of customers have chosen to book through Webjet Marketing during the period in question and we have very rarely been contacted by customers complaining about our disclosure of fees. Webjet Group is confident there is no widespread customer dissatisfaction with our offering, disclosure, service or pricing.
“As the matter is subject of proceedings in the Federal Court, Webjet Group will not be making any further comment at this time.”
The news comes at a time when Webjet is still reeling from the delaying of its 1H2025 financial results due to a technical accounting error.
Feature image: From left to right David Galt CEO of Webjet OTA; Katrina Barry CEO of Webjet Group; Don Clarke Webjet Founder(2)
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