Jetstar to face NZ courts over alleged consumer misconduct

Sydney-based budget airline Jetstar is set to face court in New Zealand over allegations of misleading and deceptive conduct.

The Commerce Commission alleges Jetstar made false or misleading representations about the price of flights and the terms and conditions of its fares.

The Commission also alleges Jetstar failed to properly inform consumers of their rights when flights were cancelled or delayed.

If the allegations are proven, Jetstar could face significant penalties, including fines of up to NZ$2 million per breach of the Fair Trading Act.

A spokesperson for Jetstar said the airline was "disappointed" by the Commission's decision to take legal action and would be "defending the allegations vigorously".

The Commerce Commission's investigation into Jetstar began in 2020 following complaints from consumers about the airline's conduct.

The Commission alleges that Jetstar made false or misleading representations about the price of flights by failing to include all mandatory charges and fees in the advertised price.

The Commission also alleges that Jetstar misled consumers about the terms and conditions of its fares by failing to properly inform them of the restrictions and penalties associated with changing or cancelling flights.

In addition, the Commission alleges that Jetstar failed to properly inform consumers of their rights when flights were cancelled or delayed.

The Commerce Commission is seeking a declaration that Jetstar breached the Fair Trading Act, injunctions to prevent Jetstar from continuing the alleged misconduct, and pecuniary penalties.

The case is set to be heard in the Auckland High Court at a date to be determined.