The Qantas Airways Ltd (ASX: QAN) share price is higher today, now trading up 0.6% to $5.06.
Qantas has shrugged off reports today the consumer advocacy group Choice has lodged a formal complaint with the Australian Competition and Consumer Commission (ACCC) against the airline.
The complaint relates to Qantas' flight credit policies which have been the topic of heated debate ever since the pandemic started.
'Unfair terms and deceptive conduct'
Qantas has been pulled into the limelight today amid allegations its flight credits scheme is unfair to consumers and may breach contract terms.
According to an update from the consumer advocacy group:
CHOICE has filed a complaint with the ACCC calling out potentially misleading and deceptive conduct in Qantas's credit redemption policy.
Aside from the potentially unfair terms, Qantas customers have reported many problems in trying to use their flight credits.
Choice spokesperson Dean Price said that Qantas was "placing unreasonable barriers in the way of travellers trying to redeem their credits or get a refund from cancelled travels", the ABC reported today.
Price said there were a number of concerns with the system, ranging from price concerns to factors like "unfair expiry dates".
Choice has conducted a number of surveys over the past few months and found that consumers faced numerous roadblocks when trying to redeem flight credits awarded from COVID-19 cancellations.
"A series of CHOICE surveys over recent months, asking people questions about travel cancellations, have made one thing clear: many have hit obstacles when trying to use the Qantas flight credits they were given in place of refunds," it found.
"Others haven't been able to use them at all."
One recent survey suggested "one in five [20%] customers have been entirely unable to use their credit", Australian Aviation reports.
Qantas allegedly changed the rules for future bookings for flights cancelled after 30 September 2021.
Choice said that meant an original ticket had to be redeemed on flights of equal or substantially more value than initially booked, even if the same flight now cost less.
For instance, if you have a $500 credit for a Sydney to Melbourne flight and the price is now $475, you wouldn't be able to use the credit, even if you waived the $25 loss. Instead, you'd have to buy a new ticket and leave your credit untouched.
And customers holding credits for international flights don't have the option of spreading the credits across several domestic flights if they booked after 30 September 2021.
The ACCC called for public evidence on the matter in March, following reports of "price gouging" raised by media outlets Nine and the ABC.
Qantas share price snapshot
The Qantas share price is down around 5% in the last 12 months of trade, climbing more than 1% higher this year to date.
Australia's national airline has a market capitalisation of $9.57 billion at its current share price.
