Virgin Australia has stopped making travel insurance a default option on its online booking website after discussions with the Australian Competition and Consumer Commission.
Instead, customers who want travel insurance will now have to select the option themselves.
"The ACCC has been engaging with domestic airlines seeking their agreement to cease the practice of pre-selection. The ACCC has been concerned that the ‘opt-out’ model means that a number of consumers inadvertently end up paying for unwanted ‘pre-ticked’ extras,” ACCC chairman Rod Sims said.
“The ACCC will continue to work with other domestic airlines to end the practice of pre-selecting optional extras in the booking process, including baggage allowances, seat selection and travel insurance.”
{loadposition sam08}“Experience overseas, including in New Zealand, shows consumers are more than capable of making purchasing decisions themselves. There are better ways for airlines to highlight the availability of these extras to consumers.
“The ACCC welcomes Virgin Australia’s decision, and now calls on other domestic airlines to follow suit. We’re certainly hopeful that they will make changes voluntarily in the short term, to the benefit of their customers, or the ACCC will explore other options.”