The airline admitted that it had contravened the Australian Consumer Law and had benefitted from the conduct.
Qantas has been ordered by the Federal Court to pay $100 million in penalties for misleading consumers, according to a statement from the ACCC this afternoon.
“This is a substantial penalty, which sets a strong signal to all businesses, big or small, that they will face serious consequences if they mislead their customers,” ACCC Chair Gina Cass-Gottlieb said.
Qantas admitted to contravening the Australian Consumer Law (ACL) after it was found to be offering and selling tickets for flights it planned to cancel – and failing to promptly inform existing ticket holders.
The carrier agreed to make joint submissions with the ACCC to the Court, admitting the $100m fine is a sufficient means to deter Qantas and other businesses from breaching the ACL in the future, while also “recognising Qantas’ cooperation in resolving the proceedings at an early stage”.
According to the ACCC, “Qantas admitted it breached the ACL by engaging in misleading or deceptive conduct, making false or misleading representations and engaging in conduct liable to mislead the public about more than 82,000 flights scheduled to depart between May 2022 and May 2024”.
In addition to the $100m in penalties, on 05 May 2024, Qantas agreed to pay about $20m to consumers who purchased tickets on flights that the airline had already decided to cancel, or in some cases, who were re-accommodated on those flights after their original flights were cancelled.
More details in tomorrow’s issue of Travel Daily.