The ACCC says Webjet misled customers with incomplete airfare advertisements and unconfirmed bookings, costing some travellers up to $2,120 extra.
Key Takeaways
- Webjet must pay $9 million in penalties for breaching Australian Consumer Law after the company advertised flights without including mandatory fees, misleading customers about actual costs.
- Between 2019 and 2024, 118 consumers received unconfirmed bookings and were later asked for extra payments, the ACCC says.
- Misleading pricing also appeared across Webjet’s website, emails, and social media.
- Additional fees – up to $54.90 per booking – accounted for over a third of Webjet’s revenue during the period in question.
Key Background
Webjet runs one of the country’s biggest online travel agencies, letting users compare and book flights, hotels, and other travel services. It’s owned by Webjet Group Limited, which is publicly listed on the ASX.
The Australian Competition and Consumer Commission (ACCC) began investigating Webjet in 2024 after a complaint over a fare advertised as “from $18” that nearly tripled in price due to hidden fees.
The ACCC alleges Webjet routinely left out mandatory charges in its marketing, especially on social media, where no fees were disclosed at all.
The regulator has made misleading pricing and surcharges a current enforcement priority, particularly across travel and retail. Webjet admitted liability, refunded affected customers, and agreed to overhaul its compliance program.
“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.
Crucial Quote
“Seeking to lure in customers with prices that don’t tell the whole story is a serious breach of the Australian Consumer Law,” Cass-Gottlieb said.
Big Number
36% – The portion of Webjet’s revenue from November 2018 to November 2023 generated by add-on fees.
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