Australian Consumer Laws have a big impact on the marketing of Qantas.

Jetstar have just been fined almost $2 million dollars after the ACCC launched legal action in December last year. Jetstar were penalised for making false and misleading representations about consumer guarantee rights breaching the Competition and Consumer Act.

What got Jetstar into trouble was that it told passengers on its web site that some fares were not refundable, and refunds were only available to passengers who bought more expensive fares.

The ACCC said that businesses like Qantas cannot make blanket no refund statements no matter how cheap the fare.

Under Australian Consumer law, passengers whose flights are cancelled or significantly delayed due to reasons within the airlines control are entitled to refunds. All consumers have the right to a refund (remedy) if services are not supplied within a reasonable time.

This has been an expensive lesson for Qantas. Jetstar have now amended its policies and practices to ensure they are consistent with Australian Consumer Law.

Source: Federal Court fines Jetstar $2m over misleading refund claims by Lauren McMah 30th May, Jetstar hit with $1.95 million fine for lying about refunds by Jessica Yun Yahoo Finance 30th May.

David Broadbridge

David Broadbridge holds a Bachelor of Commerce at the UNSW and a Dip Ed at UNE. He is the former Head Business Studies teacher at Pymble Ladies College. Follow David on Twitter or read his Qantas News Blog.