On February 27, 2012, the Department of Transportation (DOT) published a Notice Providing Additional Guidance on Airfare/Air Tour Price Advertisements (“Notice”) clarifying the new consumer rules issued on January 26, 2012 entitled, “Enhancing Airline Passenger Protections,” 76 FR 23110 (Apr. 25, 2011). Among other things, this rule requires that advertised prices must include all taxes, fees and air carrier surcharges.
The purpose of the Notice is provide additional guidance to advertisers of airline ticket prices in order to facilitate greater consumer understanding of the price of air transportation, air tours, or tour components regarding the full fare advertising rule. Additionally, DOT hopes to urge voluntary compliance by airlines and ticket agents and to announce the Department’s intention to pursue enforcement action where it discovers such practices, as appropriate.
Specifically, vendor disclosures of full fares must accurately distinguish between taxes and government fees on the one hand and carrier-imposed fees on the other. In reviewing airline web sites, DOT found many instances in which airlines misled consumers by grouping airline fees and government taxes into one category labeled i.e. “Taxes.” DOT feels that this is a deceptive practice, especially where carrier-imposed fees are often the major portion of these fees (violating section 41712). For example, one carrier had labeled a fee of $599 as a “9/11 Fee.” In fact, the majority of this charge consisted of airline fees: a $476 fuel surcharge fee and a $34 international passenger service fee. Neither charge is a government imposed fee.
Additionally, DOT wishes to remind carriers that amounts listed for particular services must reflect the actual value of services. For example, where a carrier charges $476 for a fuel surcharge, the amount assessed must be an accurate reflection of the fuel cost for an individual passenger for that trip.
For further information or questions regarding the Notice providing additional guidance on airfare/air tour price advertisements, contact Glenn Wicks or Ronce Almond at (202) 457-7790.