Australia - Jetstar and Virgin to pay penalties for misleading ‘drip pricing’ practices
The Federal Court has ordered Jetstar Airways Pty Ltd (Jetstar) to pay a $545,000 penalty and Virgin Australia Airlines Pty Ltd (Virgin) to pay a $200,000 penalty for breaches of the Australian Consumer Law. In November 2015, Jetstar was found to have made false or misleading representations about specific advertised airfares on its website in 2013 and its mobile site in 2014. Virgin was found to have made false or misleading representations about specific advertised airfares on its mobile site in 2014.
New Zealand - First jail sentence in (NZ) Commerce Commission case
Vikram Mehta, owner of mobile trader Flexi Buy Limited (Flexi Buy), has today been sentenced in the Auckland District Court to two years imprisonment after taking money from customers without intending to supply goods as promised. It is the first jail sentence handed down in a prosecution initiated by the Commerce Commission. Flexi Buy told customers that their goods would be supplied once they had made a set number of payments, when it knew they would not be. Between late 2012 and early 2014 Flexi Buy entered into over 300 consumer credit contracts, but only nine customers received their goods.
Australia - ACCC issues public warning notice about Danish online retailer LuxStyle
The Australian Competition and Consumer Commission has issued a Public Warning Notice about the alleged conduct of online retailer Lux International Sales ApS (a company based in Denmark that trades under the name LuxStyle). The ACCC has received 127 complaints about LuxStyle since January 2017.