NZ Commerce Commission charging Jetstar for misleading travellers over compensation

Commerce Commission takes Jetstar to court

The Commerce Commission has filed proceedings in the Auckland High Court against Jetstar Airways (Jetstar) for allegedly misleading consumers about their rights to compensation and refunds during the COVID-19 pandemic. The Commission alleges Jetstar made false or misleading representations about the circumstances in which consumers were entitled to a refund or compensation for cancelled flights due to COVID-19.

What the Commerce Commission alleges

The Commission alleges Jetstar breached the Fair Trading Act by:

• Telling consumers they were not entitled to a refund or compensation when they were.
• Offering consumers flight credits instead of refunds when they were entitled to a refund.
• Making it difficult for consumers to obtain a refund or compensation.

The Commission is seeking declarations from the court that Jetstar breached the Fair Trading Act, injunctions to prevent Jetstar from continuing to make the alleged false or misleading representations, and pecuniary penalties.

Jetstar's response

Jetstar denies the Commerce Commission's allegations and says it will defend the proceedings.

A Jetstar spokesperson said: "We strongly deny the allegations made by the Commerce Commission and will be vigorously defending the proceedings. We believe we have always acted in the best interests of our customers and have complied with our obligations under the Fair Trading Act."

Implications for consumers

The Commerce Commission's case against Jetstar is a reminder to consumers of their rights when it comes to cancelled flights.

If your flight is cancelled, you are entitled to a refund or compensation, even if the cancellation is due to circumstances beyond the airline's control, such as a pandemic.

If you are offered a flight credit instead of a refund, you should be aware that you have the right to a refund if you do not want the flight credit.

If you have any difficulty obtaining a refund or compensation from an airline, you can contact the Commerce Commission for help.