Blanket claims by low cost carrier Jetstar that 'some fares were not refundable, and that consumers could only get a refund if they purchased a more expensive fare' may cost the airline $1.95 million.

“No matter how cheap the fares are, airlines cannot make blanket statements to consumers that flights are non-refundable,” said Rod Sims, Chair of the Australian Competition and Consumer Commission (ACCC).

In a media release, the ACCC said:

“Jetstar has also admitted that its terms and conditions contained representations that consumer guarantees under the Australian Consumer Law did not apply to its flight services, and that Jetstar’s liability in providing remedies to consumers was limited.

“The ACCC and Jetstar have jointly submitted to the Federal Court that Jetstar should be ordered to pay a $1.95 million penalty, and to make a contribution to the ACCC’s costs.

“The Federal Court will now decide whether the proposed penalties and other orders sought are appropriate.

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