Qantas was fined $100 million after it misled customers about the availability of flight tickets.
The company was sued by the ACCC for deceiving the public about the availability of tickets on canceled flights.
Qantas admitted that it made false and misleading statements to customers about the availability of tickets for canceled flights. It also delayed informing customers about the status of their arrangements.
In May, the company agreed to pay the ACCC a $100 million fine.
The fine handed down by the court sends a strong message to other businesses that they will be held accountable for their actions, and ACCC Chair Gina Cass-Gottlieb noted that it impacted over 80,000 customers.
The tickets were sold for previously canceled flights from May 21, 2021, to August 26, 2023.
According to the court, the tickets were still available for around 11 days to 62 days after Qantas decided to cancel the flight.
In contrast, it took the company around 67 days to notify customers about the cancellation of their flights. The ACCC’s Christopher Caleo said that senior managers at the airlines knew about the issues related to the canceled flights.
No individual manager at Qantas was aware of the issues related to the availability of tickets for the canceled flights.
Despite this, the company continued to sell the tickets, which the ACCC believed caused the most harm to the customers.
A $30 million fine was imposed on Qantas for failing to promptly inform customers about the cancellation of their flights. Chair Gina Cass-Gottlieb said consumers should be informed about such cancellations as soon as possible to allow them to find other arrangements.
Over 80,000 customers were affected by the conduct of Qantas. Many of them made plans and purchased other products due to the company’s misleading statements about the availability of tickets for canceled flights.
The delay in informing them about the cancellations made it more costly and stressful for them to find other arrangements. Given the size of the company, the penalty imposed on Qantas was significant.
The court’s decision sends a strong message that other companies in Australia will be held accountable, and it will not tolerate breaches of consumer law. It also ordered the airline to pay a fine of $30 million to the ACCC.
In court, the company expressed its regret and said that the penalty was not acceptable.
Ruth Higgins, the company’s lawyer, said that it was sorry for its actions.
Over 86,000 of the affected customers received compensation, with the domestic market receiving about $225 and the international market getting $450.
Qantas noted that it has changed its systems and will notify customers whose flights have been canceled within 48 hours after the original announcement.
The company also agreed to implement an undertaking, which covers its subsidiary Jetstar. According to Higgins, the changes made by the company made it clear that it wants to avoid similar issues in the future.
It faced maximum penalties of up to $7.58 billion.