DOT Fines Two Airlines for Violating Price Advertising Rules
The U.S. Department of Transportation (DOT) fined Asiana Airlines, a carrier based in the Republic of Korea, and LOT Polish Airlines for violating federal aviation laws and the Department's rules prohibiting deceptive price advertising in air travel. Asiana was fined $70,000 and LOT $60,000.
"Airline passengers have rights, including the right to know the full fare they will have to pay when they book a flight," said U.S. Transportation Secretary Ray LaHood. "We adopted our airline price advertising rules to protect consumers from deceptive ads and will continue to take enforcement action when necessary."
DOT rules require any advertising that includes a price for air transportation to state the full price to be paid by the consumer, including all carrier-imposed surcharges. The only exception currently allowed is government-imposed taxes and fees that are assessed on a per-passenger basis, such as passenger facility charges, which may be stated separately from the advertised fare but must be clearly disclosed in the advertisement so that passengers can easily determine the full price they must pay. Internet fare listings may disclose these separate taxes and fees through a prominent link next to the fare stating that government taxes and fees are extra, and the link must take the viewer directly to information where the type and amount of taxes and fees are displayed. All carrier-imposed fees, such as fuel surcharges, must be included in the advertised fare. The rules apply to both U.S. and foreign carriers as well as ticket agents.
For a period of time during the fall of 2011, both carriers displayed ads on their websites that violated DOT's rules. Asiana's ads showed fares for various routes, with a link indicating that taxes, fees, and other restrictions could apply. The link took consumers to a page where taxes and fees were described in fine print at the bottom of the page, which was on a different screen. One of these additional fees was a fuel surcharge imposed by the carrier.
LOT displayed ads that did not provide any information about additional taxes and fees. Consumers who clicked on the fare were taken to a page containing sample routes and fares, as well as fine print explaining the type of taxes and fees on a separate screen reached only after scrolling to the bottom of the page.
Under DOT's recently adopted consumer rule that enhances protections for air travelers, carriers and ticket agents will be required to include all government taxes and fees in every advertised fare beginning Jan. 26, 2012.
The consent orders are available on the Internet at www.regulations.gov , docket DOT-OST-2012-0002.