Jetstar Airways Pty Ltd (Jetstar) and Virgin Australia Airlines Pty Ltd (Virgin) have been ordered by the Federal Court to pay substantial amount to penalty for misleading their customers with airfare prices. 

Following the initial accusations in 15 November 2015, Jetstar and Virgin have been confirmed to have made false or misleading representation about specific advertised airfares in 2013 and 2014. 
Jetstar will pay $540,000 for misleading advertisements on its website in 2013 and mobile site in 2014. Virgin will pay $200,000 for their misleading representations on its mobile site in 2014.
 
“The ACCC was concerned that Jetstar and Virgin’s ‘drip pricing’ conduct drew consumers into an online purchase process with a headline price, but failed to provide adequate disclosure of additional fees and charges that are likely to apply,” Australian Competition and Consumer Commission Chairman (ACCC) Rod Sims said. 

“As a result of the ACCC’s enforcement and compliance actions, businesses across several industries including ticketing and accommodation, have now improved their online booking practices to provide adequate disclosure of additional fees and charges that are likely to apply,” he added. 

“Drip pricing” is where the advertised headline price at the beginning of an online purchasing process is added with additional fees and charges by the end of the transaction, leading to consumers paying more than the advertised price. 

Both Jetstar and Virgin have allegedly been misrepresenting prices through other mediums such as promotional emails. However, they have only been ordered to pay the penalty for the specified instances.