Flight Centre pays $252,000 fine for allegedly misleading more than 35,000 customers with promo ads
Flight Centre has paid a $252,000 fine for allegedly misleading more than 35,000 customers who received promotional holiday vouchers during the 2018 Christmas and 2019 Easter periods.
Customers who spent $1,500 on a holiday package with the country’s biggest travel agency were given a $250 travel voucher, redeemable on their next holiday. The Australian Competition and Consumer Commission (ACCC) believed these ads could mislead customers, since the company did not disclose that redeeming the vouchers was subject to certain conditions, including booking another holiday worth more than $5,000.
The Christmas promotion in question
The time frame to redeem the voucher also wasn’t properly disclosed.
“We are concerned that consumers were enticed to purchase their holiday through Flight Centre to obtain a voucher they were not able to use without spending another $5,000, when this was not adequately disclosed,” ACCC Commissioner Sarah Court said.
The ads appeared in print newspapers and on digital screens across around 700 stores over Christmas and around 800 stores over Easter.
“Businesses are warned that the terms and conditions of any deal or promotion must be prominent, so that consumers understand what is involved in redeeming the offer,” Court added.
In response, Flight Centre has waived the $5,000 minimum spend and extended the redemption period. The cut off has moved from 30 June 2019 to 31 December 2019.
Brittney Rigby was Mumbrella's deputy managing editor - news and analysis. She left Mumbrella in April 2021.
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