The ACCC is going after Jetstar for misleading claims on refunds.
According to the ACCC, Jetstar has admitted that it made representations on its website that some fares were not refundable, and that consumers could only get a refund if they bought a more expensive fare.
The airline has also admitted its liability in providing remedies to consumers was limited.
“No matter how cheap the fares are, airlines cannot make blanket statements to consumers that flights are non-refundable,” ACCC Chair Rod Sims said.
“It’s frustrating for travellers when they have difficulty getting a refund for flights when they are entitled to one.
“This case is important not only for holding Jetstar to account, but sending a wider message that businesses cannot exclude or limit consumers’ rights under the Australian Consumer Law.”
The Federal Court will now decide if Jetstar should be ordered to pay a $1.95 million penalty.
It comes as Jetstar, Tigerair, Qantas and Virgin Australia commit to reviewing their refund policies and practices to ensure they comply with their consumer guarantee obligations after the ACCC raised concerns about current practices.
The ACCC has published new guidance to help consumers understand their rights in relation to flight delays and cancellations, which can be found here.
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