The consumer watchdog wants Jetstar to pay a $1.95-million penalty for misleading some customers over their right to a refund.

The ACCC has launched Federal Court proceedings against the Qantas-owned budget carrier.

Jetstar has admitted its website claimed some fares were not refundable and that consumers could only get a refund with a more expensive fare.

The court will now decide whether to approve a joint submission by the ACCC and Jetstar that the carrier should pay the $1.95-million penalty.

Jetstar also admitted it suggested consumer guarantees under the Australian Consumer Law did not apply to its flight services.

ACCC Chairman Rod Sims says no matter how cheap a fare is, people are always entitled to a refund.

“What we found with Jetstar is that they were making a lot of representations about no refunds.

“They were making a lot of representations that seemed to exclude your consumer guarantee rights. So we’ve taken action against them.”

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