The Commerce Commission says a Dutch airline was at risk of breaching the Fair Trading Act when it cancelled internet bookings for cheap flights from New Zealand to Europe.
KLM Royal Dutch Airlines mistakenly offered the flights to various European destinations for as little as $50 in September last year.
The airline says a data-inputting error in Amsterdam resulted in the price problems, but 649 tickets had been sold through its website by the time it was discovered.
It took the airline several hours to remove the price listing before it cancelled the bookings and issued refunds.
The commission says it accepts the mistake was genuine, but the fact it took the airline four hours to take the price off its website is not acceptable.
It says there is also evidence some consumers knew or suspected they were taking advantage of an error.
The commission says it has sent KLM a warning and the airline has taken steps to ensure the correct air fares are shown.
