Jetstar and Virgin Australia fined A$745,000 over misleading prices

Jetstar and Virgin Australia have been fined hundreds of thousands of dollars after they were found to have advertised “false and misleading” flight prices. The federal court Tuesday ordered Jetstar Airways to pay A$545,000 and Virgin Australia Airlines to pay $200,000 for breaches of Australian consumer law. The penalties come after the court found in 2015 that the use of “drip pricing” by the airlines was misleading and deceptive. Drip pricing is where a headline price is advertised at the beginning of an online booking but extra fees and charges are introduced as it progresses. The Australian Competition and Consumer Commission launched the federal court proceedings in 2014, arguing that extra fees should be disclosed upfront and prominently. <br/>