False Claims Cost Jetstar $2M In ACCC Fines
Qantas backed budget airline Jetstar has been fined almost A$2-million after deceiving customers and violating Australian Consumer Law.
The Federal Court found Jetstar made false representations about the rights and remedies available to consumers between March 2017 and April 2018.
Consumers were misled by Jetstar’s false statements that flights were not refundable unless consumers bought a more expensive fare.
Jetstar also claimed consumer guarantee rights under Australian Consumer Law didn’t apply to their flights, and that they only had limited responsibilities to provide refunds or replacement flights.
“All flights come with automatic consumer guarantees that cannot be excluded, restricted or modified, no matter how cheap the fare,” said Australian Competition & Consumer Commission chairman Rod Sims.
Jetstar admitted liability once the ACCC took the airline to court in December last year.
The airline said it’s reviewing its compliance programs, websites and booking systems and has already made several changes.
Qantas, Virgin Australia, and its budget airline Tigerair also made similar compliance undertakings.
The ACCC has been targeting the airline industry, and recently added Indonesian airline Garuda to the list of airlines from which it’s collectively fined over $130-million.