Fines of $545,000 for Jetstar and $200,000 for Virgin Australia for breaching Australian Consumer Law.
The Federal Court has today ordered Jetstar and Virgin Australia to pay large fines for so-called “drip pricing” practices, in a case brought by the Australian Competition and Consumer Commission.
In November 2015 Jetstar was found to have made false or misleading representations about specific advertised airfares on its website in 2013, and on its mobile site in 2014. Virgin was found to have made false or misleading representations about specific advertised airfares on its mobile site in 2014.
Today’s penalty ruling saw the judge comment on the concept of general deterrence in the imposition of penalties, with the fines designed to discourage similar behaviour by others.
ACCC chairman Rod Sims said the Commission was concerned that the ‘drip-pricing’ conduct drew consumers into an online purchase process with a headline price, “but failed to provide adequate disclosure of additional fees and charges that are likely to apply”.
More details in tomorrow’s issue of Travel Daily.