Australian Competition and Consumer Commission v STA Travel Pty Ltd

The Australian Competition and Consumer Commission (ACCC) brought proceedings against STA Travel Pty Ltd (STA Travel) in the Federal Court, alleging misleading and deceptive conduct in relation to the advertising of its MultiFLEX Pass, which allowed customers to change the dates of their flights. STA Travel admitted to misleading conduct by representing that the MultiFLEX Pass allowed customers to change flight dates without incurring additional fees, when in fact, additional fees were charged in many instances. The parties reached a settlement, seeking consent orders for various penalties, declarations, and injunctive relief.

The court needed to decide on the appropriate pecuniary penalties, whether the proposed declarations and injunctive relief were justified, and if the proposed orders were in the public interest. The court considered the gravity of the contraventions, the benefits of deterrence and compliance, and the need for a final resolution of the proceedings. The court noted the admissions by STA Travel, the steps taken to rectify the misleading conduct, and the benefits of the proposed orders to the public.

The court approved the consent orders, with some alterations to the penalty structure, finding that they were in the public interest. The orders required STA Travel to pay a pecuniary penalty of $14 million, publish a corrective notice, implement a Consumer Law Compliance Program, and refrain from making misleading representations in the future. The court also ordered STA Travel to contribute $200,000 towards the ACCC's costs. The orders were designed to protect the interests of the community, improve STA Travel's compliance with the Australian Consumer Law, provide deterrence, and bring about a final resolution of the proceedings.