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Jetstar fined almost $2m over misleading refunds policy (The Oz, probably pay walled, sorry)
Low-fare carrier Jetstar has been ordered to pay a fine of $1.95 million for telling passengers certain fares were non-refundable.
In a ruling delivered today, the Federal Court found between April 2017 and March 2018, Jetstar made false or misleading representations on its website about the rights and remedies available to consumers.
These included statements suggesting some fares were not refundable and that passengers could only get a refund if they bought a more expensive fare.
The court also found Jetstar’s terms and conditions breached Australian Consumer Law by claiming that consumer guarantee rights did not apply to Jetstar’s flight services, and that Jetstar had limited obligation to provide refunds or replacement flights.
ACCC chair Rod Sims said it did not matter how cheap airfares were, they still came with automatic consumer guarantees in the event of flight cancellations or significant delays.
“All consumers have the right to a remedy, such as a refund, if services are not supplied within a reasonable time,” Mr Sims said.
“Businesses simply cannot make blanket ‘no refunds’ statements, because they can mislead consumers into thinking they can never get a refund under any circumstances.”
He said the Federal Court decision would serve as a warning to all businesses that misleading consumers about their rights could result in multimillion-dollar penalties.
Jetstar has undertaken to reviewing consumer complaints concerning flights delays or cancellations during the period from April 2017 to March 2018, and promised to offer refunds or other remedies to consumers that may have been denied those remedies.
The airline also gave the ACCC a court-enforceable undertaking, committing to amend its policies and practices to ensure they were consistent with the law.
