The Australian Federal Court slapped a AUD1.95 million (USD1.35 million) fine for misinforming its passengers regarding their rights and remedies granted to them by the Australian Customer Law.

The court found that Jetstar made false or misleading statements on its website that some fares were not refundable, and that consumers could only get a refund if they purchased a more expensive fare. The misleading clause was displayed to the passengers between April 2017 and March 2018.

Jetstar also breached passengers' rights by telling them that the protections enshrined in the national law do not always apply.

"Jetstar’s representations were false or misleading because all flights come with automatic consumer guarantees that cannot be excluded, restricted or modified, no matter how cheap the fare,” Australian Competition and Customer Commission Chair Rod Sims said.

The carrier already admitted liability in December 2018, when the ACCC initiated the proceedings. Besides the fine, the carrier has also committed to amending its policies and practices. The airline also said it will reevaluate all passenger complaints filed in the period between April 10, 2017, and March 13, 2018.