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ACCC sues Jetstar and Virgin for anticompetitive behaviour

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first_imgThe Australian Competition and Consumer Commission (ACCC) has taken Jetstar Australia and Virgin Australia to court over ‘drip pricing’.The regulator accused the airlines of misleading consumers with low fares but then offloading or ‘dripping’ extra charges and fees on them later in the booking process, The Sydney Morning Herald reported.The counsel for the ACCC will allege that Jetstar and Virgin failed to be transparent about the extra booking and service fee which was AUD $8.50 for a one way ticket for Jetstar and AUD $7.70 for Virgin customers.Virgin Australia lashed out at the ACCC, querying why only it and Jetstar were targeted when “drip-pricing” is a “normal” practice among all Australian airlines.However, the ACCC defended taking legal action, saying the complaints are against Jetstar and Virgin only.Dr Gary Mortimer, of the Queensland University of Technology said that drip-pricing in the aviation industry was no different to paying extra charges when you buy a car.Source = ETB News: Tom Nealelast_img read more