Australia’s consumer rights agency has taken budget carrier Jetstar to task over its no-refund policy.
That violates Australian Consumer Law, the Australian Competition and Consumer Commission says.
The ACCC says that despite the company’s non-refundable fare policy, it is still under obligation to provide certain automatic consumer guarantees.
"No matter how cheap the fares are, airlines cannot make blanket statements to consumers that flights are non-refundable," ACCC chair Rod Sims said.
Consumer guarantees apply in the case of long delays or flight cancellations.
"It’s frustrating for travellers when they have difficulty getting a refund for flights when they are entitled to one," Sims said.
"This case is important not only for holding Jetstar to account, but sending a wider message that businesses cannot exclude or limit consumers’ rights under the Australian Consumer Law."
The ACCC and Jetstar agreed a penalty fine of $1.95 million plus legal costs which requires approval from Federal Court.
At the ACCC’s insistence, Tigerair, Qantas and Virgin Australia have all agreed to display an Australian consumer law page on their websites detailing consumer guarantees.
"Passengers will now be offered refunds or other remedies by these airlines when there has been a failure to supply the service within a reasonable time," The ACCC said.
