$1.95 million penalty for misrepresenting consumer guarantees

$1.95 million penalty for misrepresenting consumer guarantees

The purpose of the Australian Consumer Law is to protect consumer interests by keeping businesses accountable. This extends to a broad range of protections including but not limited to unfair contract terms, consumer guarantees and misleading conduct.

The ACCC recently commenced proceedings against Jetstar for breaching Australian Consumer Law under the Competitions and Consumer Act 2010 (Cth). Jetstar has admitted to making misleading representations about consumer guarantees by not allowing refunds for consumers who did not receive their service within a reasonable time. Jetstar and the ACCC have jointly proposed to the Federal Court that Jetstar pay a $1.95 million penalty and further legal costs.

We note that the Federal Court is yet to accept the proposed penalty and may still increase this amount.  The case illustrates the importance of knowing your consumer law obligations and ensuring that your refund policy is compliant.

If you need advice regarding your compliance with competition and consumer law, please contact me at or call me at 1300 033 934 for a no-obligation quote.

Source: ACCC