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The Federal Court yesterday ordered Jetstar to pay

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first_imgThe Federal Court yesterday ordered Jetstar to pay a $545,000 penalty and Virgin Australia to pay a $200,000 penalty for breaches of the Australian Consumer Law due to drip pricing, with the presiding justice noting that the penalties are designed to discourage similar behaviour by other others.In November 2015, Jetstar was found to have made false or misleading representations about specific advertised airfares on its website in 2013 and its mobile site in 2014. Virgin was found to have made false or misleading representations about specific advertised airfares on its mobile site in 2014.“The ACCC was concerned that Jetstar and Virgin’s ‘drip pricing’ conduct drew consumers into an online purchase process with a headline price, but failed to provide adequate disclosure of additional fees and charges that are likely to apply,” ACCC chairman Rod Sims said.“As a result of the ACCC’s enforcement and compliance actions, businesses across several industries, including ticketing and accommodation, have now improved their online booking practices to provide adequate disclosure of additional fees and charges that are likely to apply.” drip pricingJetstarVirgin Australialast_img

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