ACCC reaches agreement with airlines on website pricing

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Eight major airlines serving Australian consumers have improved the way they advertise airfares in response to concerns raised by the Australian Competition and Consumer Commission.

Under section 48 of Schedule 2 of the Competition and Consumer Act 2010 (CCA)*, businesses that choose to advertise a part of the price of a particular product or service must also prominently specify a single total price.

During a review of airlines for compliance with these obligations, the ACCC identified several websites that did not display airfare prices inclusive of all taxes, duties, fees and other mandatory charges.

The airlines identified in the review included:

• Jetstar Airways Pty Ltd;
• Tiger Airways Australia Pty Ltd / Tiger Singapore Pte Ltd;
• Air Asia X Sdn Bhd;
• Malaysia Airlines System Berhad;
• Air New Zealand Limited;
• LAN Airlines SA;
• American Airlines Inc; and
• Etihad Airways PJSC.

The ACCC notified each airline that it considered prices displayed on their website were a breach of section 48 of Schedule 2 of the CCA, insisting on prompt action to make their website compliant.

ACCC reaches agreement with airlines on website pricing