Australian budget carrier Jetstar has been ordered to pay almost A$2 million (US1.38m) in penalties after misleading passengers about their rights to refunds on cheap airfares.
Following action by the corporate watchdog, the Australian Competition and Consumer Commission, the Federal Court in Australia found that between April 2017 and March 2018, Qantas-owned Jetstar made false or misleading representations on its website about the rights and remedies available to customers.
The airline’s website had said that some fares were not refundable, and that passengers could only get a refund if they purchased a more expensive ticket.
“If a flight is cancelled or significantly delayed, passengers may be entitled to a refund under the consumer guarantees. All consumers have the right to a remedy, such as a refund, if services are not supplied within a reasonable time,” said ACCC chair Rod Sims.
“Businesses simply cannot make blanket ‘no refunds’ statements, because they can mislead consumers into thinking they can never get a refund under any circumstances.”