👉 Background: Webjet was founded back in 1998 and has grown to become one of Australia’s largest online travel agencies. Earlier this year, it demerged its B2B hotel platform, WebBeds, into a separate company.

👉 What happened: Now, the ACCC has taken Webjet to court over misleading and deceptive conduct. The ACCC claims that between 2018-2023, Webjet allegedly sold airfares and then slugged customers with an additional fee between $34.90 - $54.90 that wasn't advertised..

👉 What else: In some cases, Webjet sent an email confirming the booking… and then requested additional payments averaging $770 - to complete the booking. After this warning, the shares of Webjet dropped more than 6%.

What's the key learning?

💡Nothing spooks investors like a regulator poking its head around. And when the ACCC comes knocking, uncertainty skyrockets especially around the potential penalties as well as the implications for the business.

💡For example, in September last year, the ACCC announced an investigation into Qantas’ misleading conduct, and the fine was potentially up to $600 million. Next minute: Qantas’ share price dropped around 2%.

💡But when the ACCC announced the penalty of just $120 million, Qantas’ share price actually increased because it provided certainty and closure. So, Webjet will be hoping this issue with the ACCC will be dealt with swiftly.