Undertaking date

Undertaking type

s.87B undertaking

Section

Sections 18 & 29(1)(m) of the ACL

Industry

Airlines

Company or individual details

  • Name

    Virgin Australia Airlines Pty Ltd

    ABN

    36 090 670 965

Undertaking

The Australian Competition and Consumer Commission (ACCC) has accepted a court enforceable undertaking from Virgin Australia Airlines Pty Ltd (Virgin Australia).

Virgin Australia provided this Undertaking in response to the ACCC’s concerns that Virgin Australia’s booking platforms may have created an overall impression that risked misleading consumers about the nature and potential application of their consumer guarantee rights, including about the remedies that consumers may be entitled to in the event of flight delays or cancellations.

In particular, the ACCC is concerned that Virgin Australia may have made representations to consumers in relation to certain fare types, that refunds were not available at any time, and that consumers were limited to receiving a remedy only in the form of a credit valid only for 12 months. By making these representations, the ACCC is concerned Virgin Australia may have made false or misleading representations about the existence or effect of the rights or remedies available to consumers, which could constitute contraventions of sections 18 and 29(1)(m) of the Australia Consumer Law (ACL).

Virgin Australia has acknowledged the ACCC’s concerns that its conduct could have constituted contraventions of sections 18 and 29(1)(m) of the ACL.

To address the ACCC’s concerns, Virgin Australia has provided the ACCC with a section 87B undertaking that it will:

  • conduct a review of Virgin Australia’s policies, compliance program, website and booking systems to ensure they are compliant with the ACL;
  • issue an internal policy statement outlining Virgin Australia’s commitment to compliance with the ACL;
  • notify relevant employees of  Virgin Australia’s obligations to customers under the ACL and Virgin Australia’s ACL Compliance Policy;
  • create a Consumer Guarantees webpage on the Virgin Australia Website;
  • include a hyperlink to Virgin Australia’s Consumer Guarantees webpage in communications sent to customers in the event of cancellations and/or flight delays;
  • cause a comprehensive review to be undertaken of staff training;
  • conduct a past complaint review;
  • publish a statement on its website in relation to this Undertaking;
  • conduct an annual review to ensure effective compliance with the Undertaking.