Proposed fine of $1.95 million plus costs for false or misleading representations about consumer rights.
The Australian Competition and Consumer Commission has just announced the launch of legal action against Jetstar Airways for making false or misleading representations about consumer guarantee rights under the Australian Consumer Law.
Jetstar has admitted it made online representations that some fares were not refundable, and that consumers could only get a refund if they purchased a more expensive fare.
“No matter how cheap the fares are, airlines cannot make blanket statements to consumers that flights are non-refundable,” said ACCC Chair Rod Sims.
Jetstar has also admitted its terms and conditions contained representations that consumer guarantees under the Australian Consumer Law did not apply to its flight services, and that Jetstar’s liability in providing remedies to consumers was limited.
The ACCC and Jetstar have jointly submitted to the Federal Court that Jetstar should be ordered to pay a $1.95 million penalty, as well as contributing to the ACCC’s costs.
Sims said services such as flights come with automatic consumer guarantees that cannot be excluded, restricted or modified.
“If a flight is cancelled or significantly delayed for a reason that is within the airline’s control, passengers may be entitled to a refund,” he said.
“This case is important not only for holding Jetstar to account, but sending a wider message that businesses cannot exclude or limit consumers’ rights under the Australian Consumer Law,” Sims said.
More details in today’s issue of Travel Daily.