Qantas (ASX: $QAN) Agreement Overview

Qantas (ASX: $QAN) has reached an agreement with the Australian Competition & Consumer Commission (ACCC) to pay approximately $20 million to over 86,000 customers and face a $100 million penalty for breaching the Australian Consumer Law. The agreement follows court action by the ACCC, which accused Qantas of misleading consumers by advertising tickets for flights it had already decided to cancel and failing to promptly notify ticketholders of cancellations.

ACCC Chair's Statement on Qantas Agreement

ACCC Chair Gina Cass-Gottlieb stated, 'We are pleased to have secured these admissions by Qantas that it misled its customers, and its agreement that a very significant penalty is required as a result of this conduct. The size of this proposed penalty is an important milestone in enforcing the Australian Consumer Law. Qantas' conduct was egregious and unacceptable. Many consumers will have made holiday, business, and travel plans after booking on a phantom flight that had been cancelled.'

Summary of Qantas-ACCC Agreement

Qantas has admitted to misleading representations, agreed to make payments to affected customers, and committed to not engaging in similar conduct in the future. The company will also make joint submissions on the proposed $100 million penalty to the Federal Court. Additionally, Qantas will facilitate payments to 86,597 affected consumers, with an expected total value of approximately $20 million. The agreement also includes measures to prevent similar conduct in the future, such as notifying customers of cancelled flights promptly and ceasing the sale of cancelled flights within 24 hours of the decision to cancel. Consumers should be cautious of scammers and only provide personal information through the official claims portal.