What retailers can learn from Webjet’s $9 million penalty for misleading airfare pricing

The Federal Court has ordered online travel agency Webjet to pay $9 million in penalties for making false or misleading statements about the prices at which airfares were available for purchase without including additional compulsory fees, as well as the status of flight bookings.

This decision serves as an important reminder that the Australian Competition and Consumer Commission (ACCC) sees conduct that aims to lure in customers with prices that do not tell the ‘whole story’ as a serious breach of the Australian Consumer Law (ACL) and will take enforcement action in respect of such conduct in line with its current priorities.

E-commerce businesses should ensure pricing is transparent, verify that all pricing communications comply with the ACL, and act early if they find themselves engaged in contravening conduct to avoid ACCC enforcement proceedings and reputational damage.

ACCC vs Webjet: Background

Webjet allows consumers to compare and book flights, hotels, car rental and travel insurance on its website and mobile application.

In November 2024, the ACCC instituted Federal Court proceedings against Webjet alleging that the travel agency engaged in misleading or deceptive conduct in breach of section 18 of the ACL, and made false or misleading representations in breach of section 29(1)(i) of the ACL.

Webjet cooperated with the ACCC and in February 2025, admitted liability and agreed to make joint submissions to the Court about orders, including the appropriate penalty. 

Pricing representations

Webjet admitted that between 2018 and 2023, they represented to consumers that flights could be purchased at or from certain prices, without adequately disclosing the additional compulsory fees that would apply. These fees were made up of a ‘servicing fee’ and ‘price guarantee fee’, ranging anywhere from $34.90 to $54.90 per booking, depending on the flight. 

While Webjet’s website, app and emails had information about these additional fees in the fine print at the bottom of the screen, the fees were not disclosed to consumers at all in social media posts. These omissions meant that the displayed price was never truly available, misleading consumers into thinking the lower fares were attainable. 

The ACCC’s investigation followed a complaint where a consumer paid almost three times the advertised ‘from $X’ price once the compulsory fees were applied to the booking. 

Booking confirmation representations

Webjet also admitted that between 2019 and 2024, it represented to 118 consumers that their flight bookings had been confirmed at the price paid by the consumer, when in fact the bookings had not been confirmed. After issuing a booking confirmation, Webjet later requested additional payments of up to $2,120 from consumers to complete the bookings. In circumstances where consumers were issued a booking confirmation without having actually secured the flight at the price initially paid, the representations were false or misleading.

Webjet subsequently refunded the additional payments to consumers.

Outcome

In July 2025, the Federal Court signed off on orders, consistent with an agreement reached between the ACCC and Webjet, that Webjet:

• pay a total penalty of $9 million
• publish a corrective notice for 60 days on its platforms
• implement and maintain an ACL compliance program
• pay $100,000 towards the ACCC’s legal costs.

Webjet has already taken steps to publish a corrective notice on its website. 

The size of the penalty is reflective of the seriousness of the breaches of the ACL, as well as the significant financial gain derived from the conduct in circumstances where Webjet’s compulsory fees accounted for roughly 36% of its total revenue between November 2018 and November 2023.

How can e-commerce businesses avoid misleading pricing claims?

• Ensure price transparency: Disclose all fees, surcharges, and additional costs upfront rather than adding them late in the booking process. This case reaffirms that advertised ‘from $X’ prices must be real, inclusive and not subject to hidden costs – that is, the advertised price should tell ‘the whole story’.
• Expect greater regulatory scrutiny: Ensure all platforms and modes of communication comply with the ACL. This includes company websites, confirmation emails and text messages, and social media posts.
• Keep in mind ACCC’s priorities: Misleading surcharging practices, and consumer and fair-trading concerns in the supermarket and retail sectors, with a focus on misleading pricing practices, continue to be ACCC’s priorities. The regulator is prepared to impose significant penalties on businesses that breach the ACL to serve as specific and general deterrence measures.
• Act early when issues arise: When a business realises it has engaged in contravening conduct, including because of an ACCC investigation, taking early steps to seek advice, acknowledge the conduct (including making early admissions), cooperate with the ACCC, and negotiate an appropriate remedy could help avoid ACCC enforcement proceedings and reputational damage.

How can we help?

Our team can assist you in understanding your consumer law risks, developing mitigating policies and processes, and delivering compliance training.

We can also assist you in dealing with any ACCC investigations and enforcement actions. If you have any questions, please get in touch with us here.

Disclaimer
The information in this article is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this article is accurate at the date it is received or that it will continue to be accurate in the future.

Published by:

Joanne Jary

Felicia Quagliata

Saskia Jones

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