ARTICLE · 30 JUNE 2014

ACCC takes action against Jetstar and Virgin for alleged drip pricing practices

Clayton Utz

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The ACCC is following through on its announcement to crack down on so-called drip pricing practices by online businesses.

AustraliaConsumer Protection

Ian Reynolds (Formerly With Clayton Utz)

Matthew Battersby

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The Virgin and Jetstar proceedings show that the ACCC is following through on its announcement to crack down on so-called drip pricing practices by online businesses.

The ACCC's court action against Jetstar Airways Pty Ltd and Virgin Australia Airlines Pty Ltd, alleging that each airline engaged in misleading or deceptive conduct and engaged in "drip pricing" in relation to particular airfares is intended to provide a strong deterrent message to all online retailers.

What is drip pricing?

The ACCC considers drip pricing to involve the incremental disclosure of fees and charges over an online purchase process, to the detriment of consumers who might end up paying more than they realise.

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