The consumer watchdog wants Jetstar to pay a $1.95 million penalty for misleading some customers over their right to a refund.
The Australian Competition and Consumer Commission has launched Federal Court proceedings against the Qantas-owned budget carrier, which has admitted that its website said some fares were not refundable, and that consumers could only get a refund with a more expensive fare.
The Federal Court will now decide whether to approve a joint submission by the ACCC and Jetstar that the carrier should pay the $1.95 million penalty and contribute to the watchdog's costs.