Jetstar fined of $A1.95 million for misleading customers over legal rights

 Monday, December 17, 2018 


For making false or misleading representations about consumer guarantee rights under the Australian Consumer Law (ACL) Jetstar is facing a court action a fine of $A1.95 million.



As per the Australian Competition and Consumer Commission (ACCC) Jetstar agreed that that there were representation on the website on some fares which were not refundable and those consumers purchased who a more expensive fare would get the refund.


ACCC Chair Rod Sims said that no matter how cheap the fares are, airlines cannot make blanket statements to consumers that flights are non-refundable.


Jetstar mentioned that its terms and conditions had representations guaranteed under Australian consumer law which did not apply to its flight services. Further Jetstar had limitation in providing remedies  to consumers.



To make contribution to the ACCC’s costs the ACCC and Jetstar have jointly submitted to the Federal Court that Jetstar should be ordered to pay a $A1.95 million penalty.Whether the proposed penalties and other orders sought are appropriate will now be decided by the Federal Court.



Services  like flights came with automatic consumer guarantees, and these rights cannot be excluded, restricted or modified as per the ACCC.


Under the consumer gurantees if a flight is canceled or significantly delayed, passengers may be entitled to a refund.


Sims said the travellers feel frustrated when they have difficulty in getting a refund for flights when they are entitled to get. It is important to send across a message that under the Australian Consumer Law businesses  cannot exude or limit consumers’ rights.



ACCC’s response to common consumer issues arising in the airline industry and the ACCC’s concerns led to the legal action against Jetstar. In Airlines: Terms & Conditions  Report ACCC detailed its industry-wide concerns.


A court-enforcebable undertaking from Jetsare was separately accepted from the ACCC along with Qantas, Virgin Australia and Tigerair.


Jetstar chief executive Gareth Evans said the airline took its obligation under Australian Consumer Law was taken on a serious note  and it had worked closely with the ACCC on changes to the wording on its website.



He mentioned that they had updated their terms and conditions to make it easier for customers to understand when they were eligible for a refund.




Similar to other low fares airlines in Australia and around the world, customers purchasing their cheapest fares will get a refund if they decide they no intention to travel. Further there a number of fare types that gives those customers an option who want to change their mind.

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