Popular bookings website taken to court over alleged hidden fees

The Australian Competition and Consumer Commission alleges Webjet advertised minimum airfares but failed to disclose compulsory service and booking fees.

It will also allege Webjet took payments for flights and sent customers confirmation emails, but had not booked the flights with the airline.

ACCC chair Gina Cass-Gottlieb said she was very concerned about the conduct.

The pricing claims relate to Webjet's marketing on social media, emails and its app about minimum airfares to domestic and international destinations.

Webjet advertised "flights from $x", however the quoted price did not include the Webjet servicing fee or booking price guarantee fee, which ranged from $34.90 to $54.90 per booking, the ACCC alleges.

Among the examples were airfares to London advertised as "Flights from $1398* return".

The statements were made between November 2018 to November 2023, the ACCC said.

The ACCC alleges the additional fees were not disclosed on social media. It said while the information was available on the Webject app and website, it was not prominent and was written in fine print.

Ms Cass-Gottlieb said the conduct came at a time when consumers were carefully considering their travel purchases and looking to save money.

"A statement about the lowest price must be a true minimum price, not a price subject to further fees and charges before a booking can be made," she said.

The ACCC will also allege Webjet breached consumer law by taking payment from customers but not booking the flight with the respective airline.

Customers allegedly received a confirmation email after paying, but were then asked for an additional payment before Webjet would complete the booking, or were offered a refund instead.

This conduct occurred across 382 bookings between at least November 2018 and June 2024, the ACCC alleges.

The watchdog said customers may have made other travel arrangements having paid for their flight and receiving confirmation from Webjet.

They may have had to choose between paying more money or cancelling other travel plans at a potential loss, the ACCC said.

"We are very concerned about this alleged conduct by Webjet, which represented to consumers that their flight booking had been confirmed and left some consumers in the position of having to pay more to later complete the booking," Ms Cass-Gottlieb said.

Through the Federal Court action, the ACCC is seeking penalties, declarations, injunctions, consumer redress, costs and other orders.

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