Sydney, Oct 8: Qantas, Australia’s largest airline, has been ordered by the Federal Court to pay $100 million in penalties for misleading consumers by selling tickets for flights it had already decided to cancel. The penalties were imposed after Qantas admitted it had breached the Australian Consumer Law (ACL) by failing to notify consumers about flight cancellations promptly.
The case, brought by the Australian Competition and Consumer Commission (ACCC), resulted in the airline agreeing to joint submissions with the ACCC, acknowledging the breaches and agreeing on the penalties to deter similar conduct in the future.
“This is a substantial penalty, which sets a strong signal to all businesses, big or small, that they will face serious consequences if they mislead their customers,” said ACCC Chair Gina Cass-Gottlieb.
In addition to the fines, Qantas will pay around $20 million to affected consumers who bought tickets for flights already cancelled or were rebooked on these flights.
This payment is on top of any refunds or alternative arrangements consumers received.
Up to 880,000 consumers were affected by Qantas’ actions, which involved over 82,000 domestic and international flights between May 2022 and May 2024.
The airline admitted it benefited from the situation by continuing to sell tickets and delaying notification to consumers.
Qantas has since made changes to its systems to ensure such conduct does not reoccur.
The ACCC urged all eligible consumers to check their emails and claim their compensation by May 2025.
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