Qantas has reached an agreement with the Australian Competition and Consumer Commission to settle a lawsuit against the airline for selling seats on flights that had already been cancelled. Under the settlement, Qantas will institute a remediation program for affected customers.
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00:00Qantas admits that it misled thousands of its customers by continuing to sell tickets
00:08on flights it had already decided to cancel.
00:11It also admits that it misled existing ticket holders when it failed to promptly inform
00:17them of the cancellations.
00:19The ACCC and Qantas will ask the Federal Court to impose a $100 million penalty for breach
00:26of the Australian Consumer Law.
00:29Qantas has also committed today to pay in total $20 million to approximately 87,000
00:37customers who were sold tickets on flights that were already cancelled.
00:43In addition, Qantas has undertaken to the ACCC to not repeat this conduct in the future,
00:50to notify Qantas and Jetstar customers promptly when flights are cancelled, and to not continue
00:56to sell tickets on flights that have been cancelled.
01:00This was egregious and unacceptable conduct by Qantas.
01:05Many Australian families and business travellers made plans after making bookings on phantom
01:12flights.
01:13This $100 million penalty, if accepted by the Federal Court, will send a strong message
01:20to Australian companies that they must comply with the Australian Consumer Law.
01:26The ACCC assures the community we take action to make sure that businesses communicate clearly,
01:36accurately and honestly with their customers at all times.
01:41What is really important is that they have admitted that they misled customers by continuing
01:47to sell tickets on flights that they'd already decided to cancel and by failing to inform.
01:54They accept and admit that that is conduct in breach of the Australian Consumer Law that
02:00warrants, and they will jointly with us, submit to the Court that a $100 million penalty is
02:05appropriate.
02:08In the interests of getting an early settlement and the additional payments and compensation
02:16to customers, we are no longer taking forward a requirement that they admit to a contravention
02:24of selling a service and receiving a payment with no intention of providing that service.