(Reuters) – New Zealand’s competition watchdog has taken Qantas’s low-cost carrier Jetstar to court, accusing it of misleading consumers about their rights to compensation for delayed and cancelled flights, the regulator said.

Jetstar appears to have discouraged consumers from seeking compensation and may have rejected claims for flights delayed or cancelled due to reasons attributable to the carrier, the New Zealand Trade Commission (NZCC) said on Wednesday.

The regulator believes the airline misled consumers about their rights under aviation law in 2022 and 2023. It will file charges in the Auckland District Court soon, the NZCC added.

Jetstar said it was fully co-operating with the NZCC in its investigation.

“We began reviewing past claims late last year and have been in touch with affected customers to ensure they have received the correct refunds. We continue to work on this as a matter of priority,” the budget airline said.

Qantas did not immediately respond to a request for comment.