Consumer advocacy group CHOICE wants the way airlines deal with passengers to be overhauled after a six-month investigation revealed what it says are systemic breaches of Australian Consumer Law.
These breaches include use of "no refund" signs, excessive cancellation fees and no compensation for airlines' mistakes, according to CHOICE director of campaigns, communications and content Matt Levey.
The organisation has filed a super complaint with the Australian Competition and Consumer Commission over these lapses. This class of complaint is filed by CHOICE when it deems that complaints in an industry have reached epidemic proportions.
“From repeatedly informing travellers they do not have a right to a refund to charging sky-high cancellation fees, our domestic airlines have been flying below the radar when it comes to consumer protection,” Levey said.
{loadposition sam08}“Our investigation reveals the significant power imbalance between consumers and airlines, who are not being held to the same basic standards as other industries.
“Businesses across the country are banned from making blanket ‘no refund’ claims, but the airlines do so blatantly when selling tickets.
“Under the Australian Consumer Law, you have a right to a refund no matter how many times an airline lands you with a no refund message as you make your way through an online checkout."
CHOICE has published its findings in a report titled "Fare Play? Terms and conditions in Australia's Airline Industry."
Key findings of the investigation:
- Three of four major domestic airlines make blanket “no refund” claims in the booking process without informing a consumer of their right to refund under the Australian Consumer Law.
- Airlines are charging cancellation fees of up to $550 per ticket, or not offering the option of a refund at all even when there is ample time to resell.
- Airlines take no responsibility to deliver passengers to their location in a reasonable time, despite charging higher prices for peak flight times.
- Consumers are not offered adequate remedies when their flights are delayed or cancelled, with some consumers being offered no remedy at all.
- Some consumers are being provided with credit for future flights when with no information on how to access that credit.
- Passengers who miss the first or subsequent leg of a flight risk having their ticket voided, despite having paid for their onward flights.
CHOICE has called for airlines to immediately remove “no refund” signs from their online checkouts, to immediately remove “no show” clauses from their contracts and for the ACCC to take action against any airline breaching Australian Consumer Law.