In a landmark ruling, the Federal Court has ordered online travel agency Webjet Marketing Pty Ltd to pay AU $9 million in penalties after being found to have made false or misleading representations to consumers regarding flight pricing and bookings.
Between 2018 and 2023, Webjet advertised “flights from $X” across its website, app, email campaigns and social media channels, without including mandatory fees such as the Webjet servicing fee and booking price guarantee fee. These charges, which ranged from AU $34.90 to AU $54.90 per booking, meant that the advertised prices were not actually available to customers. In many cases, the fees were disclosed only in fine print or after several layers of navigation, and on social media posts they were absent altogether.
The court also found that between 2019 and 2024, Webjet misled customers in at least 382 instances by issuing booking confirmations when no airline booking had actually been made. In some cases, customers were asked to pay additional sums—up to AU $2,120—to secure their flights, while others received refunds only after making associated travel arrangements based on false confirmations.
ACCC Chair Gina Cass‑Gottlieb described the behaviour as a serious breach of Australian Consumer Law, noting that “a statement about the lowest price must be a true minimum price, not a price subject to further fees and charges.” She emphasised the importance of pricing transparency, especially at a time when Australians are highly cost-conscious.
Webjet acknowledged the breaches and has cooperated with the ACCC throughout the process. As part of the outcome, the company has agreed to publish a corrective notice on its website for at least 60 days, implement a compliance program, and contribute AU $100,000 toward the ACCC’s court costs. The company stated it has already revised its fee disclosure practices and noted that customer satisfaction remains high.
The AU $9 million penalty is one of the largest ever imposed on a travel agency for breaches of consumer law and follows other recent actions by the ACCC against major travel providers, including a record AU $100 million fine against Qantas in 2024. The Webjet case serves as a clear warning to the industry about the importance of transparent pricing and accurate customer communication.
For travel businesses across Australia, this ruling highlights the need for consistency in pricing disclosures across all platforms, from websites and apps to marketing emails and social posts. It also underscores the necessity of confirming bookings only after they are genuinely secured and ensuring compliance with consumer protection laws is embedded into everyday operations.
The case highlights the importance of clear and consistent pricing disclosures across all digital platforms, including websites, apps, emails and social media. It also underscores the need for booking confirmations to accurately reflect the status of a reservation. As the online travel market continues to grow, regulatory bodies and consumers alike are placing greater emphasis on transparency and compliance with Australian Consumer Law.
