In ACCC v Jetstar Airways Pty Ltd  FCA 797 (30 May 2019), the Federal Court of Australia (the “Federal Court”) has ordered Jetstar Airways Pty Ltd (“Jetstar”) to pay $1.95 million in penalties for making false or misleading representations about consumer guarantee rights under the Australian Consumer Law (the “ACL”, Schedule 2 of the Competition and Consumer Act 2010 (Cth)). The action against Jetstar was brought by the Australian Competition and Consumer Commission (“ACCC”).
In December 2018, theinstituted legal proceedings against Jetstar for breaches of sections 18 and 29(1)(m) of the ACL.
Thethat between April 2017 and March 2018, Jetstar made false or misleading representations on its website about the rights and remedies available to consumers. Jetstar also made false or misleading statements on its website that some fares were not refundable, and informed consumers they could only get a refund if they purchased a more expensive fare.
Jetstar admitted liability, and the ACCC and Jetstar made joint submissions on penalties to the Federal Court. Jetstar agreed to pay a $1.95 million penalty, as well as making a contribution to the ACCC’s costs.
In handing down her judgment, Justice Perry noted at para :
Her Honour also noted at paras [29 and 30] of her judgment:
The Federal Court also found that Jetstar’s Terms and Conditions breached the ACL by claiming that consumer guarantee rights under the ACL did not apply to Jetstar’s flight services, and that Jetstar’s obligation to provide refunds or replacement flights was limited.
Chair of the ACCC, Rod Sims ,commented in the:
reports under that under Australian consumer law, passengers whose flights are cancelled or significantly delayed due to reasons within the airline’s control are entitled to refunds.
Speaking to, a Jetstar spokesperson said:
Jetstar has also has indicated it will offer refunds to customers affected by the misleading statements during the relevant period. It has beenthat other airlines, such as Qantas, Virgin Australia and Tigerair Australia have said they will ensure their policies and practices comply with consumer law.
On 15 May 2019 the ACCC accepted aprovided to the ACCC by Jetstar (being previously accepted by the ). The object of the Undertaking is to address some of the ACCC’s concerns about certain false and misleading representations Jetstar made to consumers about the nature and potential application of their consumer guarantee rights, including about the remedies that consumers may be entitled to in the event of flight delays or cancellations.
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ACCC v Jetstar Airways Pty Ltd  FCA 797 (30 May 2019)
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