The Federal Court of Australia has imposed a $9 million penalty on Webjet, an online travel agency, for making false and misleading statements regarding airfare prices and booking confirmations. This ruling comes after the Australian Competition and Consumer Commission (ACCC) initiated legal action against the company.

Between 2018 and 2023, Webjet admitted to advertising airfares that did not include mandatory fees, leading to significant discrepancies between advertised prices and actual costs. The misleading statements were disseminated through the company's website, promotional emails, and social media channels.

Additionally, from 2019 to 2024, Webjet provided incorrect booking confirmations to 118 consumers, who were later asked to pay extra fees to finalize their bookings. The company has since refunded these consumers. The ACCC's investigation was triggered by a consumer complaint regarding an airfare advertised as “from $18,” which ultimately cost nearly three times that amount due to added fees.

ACCC Chair Gina Cass-Gottlieb emphasized the seriousness of misleading pricing practices, stating that retailers must ensure their advertised prices are accurate and that additional fees are clearly disclosed. Webjet's fees, which included a “Webjet servicing fee” and a “booking price guarantee” fee, accounted for 36% of the company's total revenue during the specified period.

Webjet cooperated with the ACCC throughout the investigation, admitted liability, and agreed to joint submissions regarding the penalty. The Court also mandated that Webjet review its compliance program and contribute to the ACCC's costs.