17 Mar 2016

Jetstar scraps opt-out pricing

2:02 pm on 17 March 2016

Jetstar is to stop using opt-out pricing in New Zealand.

Jetstar

Photo: 123rf

The Commerce Commission has been investigating the practice, which it says misleads customers over the price of products and services.

The airline has been offering pre-selection on luggage, seat selection and travel insurance during its online booking process, at an extra cost to the advertised flight price.

Customers who didn't want the service needed to opt out by ticking a button.

Last year, the commission said the practice could lead to consumers purchasing items they didn't intend to, and it called for all New Zealand businesses to end the use of opt-out pricing.

Companies including Air New Zealand, House of Travel and Dash Tickets agreed to do so, but Jetstar declined.

The commission said it was prepared to take Jetstar to court, but the airline has now given a court enforceable undertaking to scrap the opt-out feature by 30 April.