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Qantas agrees to $20m payments to customers and, subject to court approval, a $100m penalty for misleading consumers

Qantas (ASX: QAN) has admitted that it misled consumers by advertising tickets for tens of thousands of flights it had already decided to cancel, and by cancelling thousands more flights without promptly telling ticketholders of its decision, after court action by the ACCC.

As part of an agreement announced today, the ACCC and Qantas will ask the Federal Court of Australia to impose a penalty of $100 million on Qantas for breaching the Australian Consumer Law.

Qantas has also agreed in a court-enforceable undertaking to pay about $20 million to more than 86,000 customers who were sold tickets on flights that Qantas had already decided to cancel, or in some cases who were reaccommodated on these flights after their original flights were cancelled.

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