Jetstar faces $2m fine as airlines put on notice over refund lies

Airlines have been put on notice that they must be fairer with travellers over refunds, with Jetstar facing an almost $2m fine for misleading its customers about their legal rights. All four of Australia's major airlines have entered court-enforceable undertakings with the consumer watchdog to change their refund policies after they were caught lying to customers about access to refunds when a flight was delayed or cancelled. “For too long the airlines have been ignoring consumers' rights for refunds,” said Australian Competition and Consumer Commission chair Rod Sims. “You cannot say there are no refunds - no matter how cheap the ticket is, no matter what ticket you buy.” Each airline said it would reassess customer complaints that had earlier been knocked back for refunds and the ACCC urged travellers who had been refused a refund to contact their carrier. Sims said Jetstar was the worst offender, making claims on its website that consumers could only receive a refund if they bought a more expensive fare, and that standard consumer guarantees did not apply to its flights. The ACCC took Jetstar to court over its breaches and the pair have agreed on a $1.95m fine, which has been submitted to the Federal Court for approval. Under the law, consumers may be entitled to a refund if a flight is significantly delayed or cancelled for a reason within the airline's control and the airline cannot put the passenger on an alternative flight in a reasonable time.<br/>