Jetstar and Virgin cough up big money for misleading ‘drip pricing’ techniques
Jetstar and Virgin cough up hundreds of thousands for misleading ‘drip pricing’ techniques
It’s the dodgy airline tactic that infuriates so many Australian holidaymakers – but finally it’s Jetstar and Virgin who are being forced to pay the price for misleading advertising.
The practice is known as “drip pricing” – when an advertised price becomes unavoidably higher with extra fees as you progress further into an online transaction.
For example, a flight advertised for $139 might jump $17 for credit card booking and service fees.
Jetstar has been deemed the worst offender, hit with a landmark fine in the Federal Court yesterday of $545,000 for using deceptive prices to lure in customers.
Virgin Australia was also fined $200,000.
The ACCC said it chose to take Federal Court action in 2014 due to a large number of complaints from the public, and the strong penalty is designed to send a message to airlines that the tactic will not be tolerated.
Jetstar said it had taken steps to reduce the sneaky tactic via both its web and mobile sites.
“On 1 September 2016 we removed the booking and service fee on domestic and international flights from Australia and we continue to offer a number of fee-free payment options for our customers who prefer not to pay with a credit card,” the airline said in a statement.
Read full article and learn more about Deceptive Advertising here.
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