$9 Million Penalty for Webjet: What Businesses Can Learn from Misleading Pricing Breaches

Date: 28 July 2025

Source: ACCC Media Release

Bane Legal Services is not a law firm and does not provide legal advice. We connect business owners with experienced commercial lawyers tailored to their specific needs.

Online travel giant Webjet has been hit with $9 million in penalties by the Federal Court for breaching the Australian Consumer Law, following legal action by the Australian Competition and Consumer Commission (ACCC). The decision comes after Webjet admitted to misleading consumers about airfare prices and issuing false booking confirmations over several years.

This high-profile case serves as a warning to businesses in all sectors — especially those using digital platforms — about the legal and financial consequences of misleading pricing tactics and inadequate disclosure.

What Happened?

Between 2018 and 2023, Webjet promoted flight prices on its website, social media, and promotional emails that excluded compulsory fees, such as:

• A “Webjet servicing fee”

• A “booking price guarantee” fee

These extra charges ranged from $34.90 to $54.90 depending on the flight type and destination. In one consumer complaint, an airfare promoted as “from $18” ended up costing nearly three times as much once fees were applied.

To make matters worse, from 2019 to 2024, Webjet also sent false booking confirmations to at least 118 customers — telling them their flights were booked when, in fact, they weren’t. These customers were later asked to pay up to $2,120 extra to finalise the booking. Webjet has since refunded those affected.

The ACCC’s Stance

ACCC Chair Gina Cass-Gottlieb was clear in her criticism:

“Seeking to lure in customers with prices that don’t tell the whole story is a serious breach of the Australian Consumer Law. Retailers must ensure their advertised prices are accurate. They should clearly disclose additional fees and charges.”

The ACCC launched proceedings in November 2024, ultimately securing not only penalties but also declarations, compliance program reviews, and costs orders against Webjet.

Notably, these undisclosed service fees made up 36% of Webjet’s total revenue over the five-year period — a stark reminder of the financial incentive some businesses may have to conceal the true cost of goods or services.

Key Takeaways for Australian Businesses

If you're a business owner, franchisor, or eCommerce operator, here’s what this case means for you:

1. Transparent Pricing Is Not Optional

Under Australian Consumer Law, pricing must be clear, honest, and not misleading. All compulsory fees should be disclosed upfront, not buried in fine print or hidden behind “from” pricing.

2. Digital and Social Media Are Not Exempt

Whether it's on a website, in an app, or on Instagram, all advertising channels must comply with consumer law. In Webjet’s case, some social media posts didn’t disclose any fees at all — which was part of the breach.

3. Booking Confirmations Must Be Accurate

Businesses involved in online transactions must ensure that confirmations are only sent once the transaction is complete. Sending premature or inaccurate confirmations can amount to misleading conduct.

4. Penalties Are Getting Heavier

The ACCC is ramping up enforcement in sectors like retail, travel, and digital marketplaces. With $9 million penalties and mandatory compliance programs now common, even large brands aren’t immune.

Don’t Risk It — Find the Right Legal Advice

Bane Legal Services is not a law firm and does not provide legal advice. However, we’re your trusted legal matchmaker — with more than 30 years of business experience and a network of specialist commercial lawyers.

Whether you’re:

• Launching a new online platform

• Negotiating with suppliers or franchisors

• Worried about your advertising compliance

• Or simply want peace of mind before your next campaign

—we’ll connect you with a lawyer who understands your business, your industry, and your goals.

Want to avoid the next $9 million mistake?

Talk to Bane Legal Services today — and get matched with a legal expert who can keep your business on the right side of the law.

This blog post is based on information published by the ACCC on 28 July 2025. For the full media release, visit: ACCC website.

Bane Legal Services is not affiliated with Webjet or the ACCC.