The Malaysia-based airline, which flies international services out of Australia from the Gold Coast, Melbourne and Perth, with Sydney to be added from April, was named in documents lodged at the Federal Court in Melbourne.
The Australian Competition and Consumer Commission, the country's consumer watchdog, claims some fares sold on AirAsia's website do not display prices inclusive of all taxes, duties, fees and other charges.
"Businesses that choose to advertise a part of the price of a particular product or service must also prominently specify a single total price," it said in a media release.
The regulator alleged the fares relate to flights from Melbourne to cities including London, New Delhi, and Hangzhou in China, from the Gold Coast to Ho Chi Minh City and from Perth to places such as Taipei and Phuket in Thailand.
The matter is listed to be heard on March 2 with the watchdog seeking an injunction "to restrain AirAsia from engaging in misleading conduct in the future".
It also wants a court order "that AirAsia publish corrective notices on its websites regarding the conduct".
AirAsia could not immediately be reached for comment.