Commerce Commission to file charges against Jetstar alleging it misled customers

Key points:

• The Commerce Commission has filed charges against Jetstar Airways alleging that it misled customers about the availability and pricing of flights.
• The Commission alleges that Jetstar made false or misleading representations about the availability of flights on its website and in its advertising.
• The Commission also alleges that Jetstar failed to provide customers with accurate information about the total cost of flights, including taxes and fees.

Background:

The Commerce Commission is an independent Crown entity responsible for promoting competition and protecting consumers in New Zealand. The Commission has the power to investigate and prosecute businesses that breach the Fair Trading Act.

Jetstar Airways is a low-cost airline that operates flights within Australia, New Zealand, and Asia. Jetstar is a subsidiary of Qantas Airways.

The allegations:

The Commerce Commission alleges that Jetstar misled customers about the availability and pricing of flights on its website and in its advertising. The Commission alleges that Jetstar made false or misleading representations about the following:

• The availability of flights on specific dates and times.
• The availability of seats on specific flights.
• The total cost of flights, including taxes and fees.

The Commission also alleges that Jetstar failed to provide customers with accurate information about the terms and conditions of its fares. This includes information about refund and cancellation policies.

The charges:

The Commerce Commission has filed three charges against Jetstar Airways under the Fair Trading Act. The charges are as follows:

• Making false or misleading representations about the availability of flights
• Making false or misleading representations about the price of flights
• Failing to provide accurate information about the terms and conditions of fares

The penalties:

If Jetstar is found guilty of the charges, it could face significant penalties. The maximum penalty for each charge is NZ$600,000. The Court may also order Jetstar to pay compensation to affected customers.

The next steps:

The Commerce Commission will now file a statement of claim in the Auckland High Court. Jetstar will then have the opportunity to file a defense. The matter is expected to go to trial in early 2023.

Comment:

The Commerce Commission's decision to file charges against Jetstar is a significant development. It is the first time that the Commission has taken legal action against an airline for misleading customers about the availability and pricing of flights.

The charges send a clear message to businesses that they must comply with the Fair Trading Act. Businesses must not make false or misleading representations about their products or services.

The Commerce Commission's action is also a reminder to consumers to be vigilant when booking flights. Consumers should always check the terms and conditions of fares carefully before purchasing tickets.