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DOT Fines BA $250,000 - False Fare Advertising  
User currently offlineLAXintl From United States of America, joined May 2000, 25202 posts, RR: 48
Posted (1 year 11 months 6 days 6 hours ago) and read 2956 times:

Department of Transportation is out with a $250,000 consent decree violation agreement against British Airways Plc for violations of airfare advertising requirements.

The department noted that British Airways prominently advertised credit card, frequent flyer awards, and companion awards as being "free", while in reality BA charged consumers mandatory fees of as much as $600. In addition BA failed to provide the proper notice that such tickets would be subject to additional regulatory taxes and governmental fees.

Additionally the DOT has noted numerous airfare and air tour advertisements offered by BA that failed to state the full price to be paid by consumers along with failing to provide proper disclosure of applicable taxes and government fees.

Lastly, department noted BA violations that marketed one-way fares without prominently indicating requirement of round-trip purchase.


Order 2012-10-1


From the desert to the sea, to all of Southern California
9 replies: All unread, jump to last
 
User currently offlineAesma From France, joined Nov 2009, 6618 posts, RR: 9
Reply 1, posted (1 year 11 months 6 days 1 hour ago) and read 2488 times:

Isn't that fine far more than other airlines have gotten for the same kind of violations ? Not that it's that big anyway.


New Technology is the name we give to stuff that doesn't work yet. Douglas Adams
User currently offlinetoobz From Finland, joined Jan 2010, 781 posts, RR: 0
Reply 2, posted (1 year 11 months 5 days 22 hours ago) and read 2252 times:

If i remember correct I think LAXintl explained once that amt of the fine is based on the number of occurrences or transactions that took place with the "misleading info". I'm sorry LAX if I am misquoting you :-/

User currently offlineikramerica From United States of America, joined May 2005, 21516 posts, RR: 60
Reply 3, posted (1 year 11 months 5 days 22 hours ago) and read 2160 times:

Adding fuel surcharges to "free" tickets should earn a larger fine. But DOT is fine with that deceptive practice as long as its advertised.


Of all the things to worry about... the Wookie has no pants.
User currently offlineqf002 From Australia, joined Jul 2011, 2970 posts, RR: 2
Reply 4, posted (1 year 11 months 5 days 21 hours ago) and read 2107 times:

Quoting ikramerica (Reply 3):

And credit card fees. So many airlines make it ridiculously hard and complicated to pay in any other way, and the charges can end up adding 5-10% of the cost of the flight in some cases.


User currently onlineRyanairGuru From Australia, joined Oct 2006, 5489 posts, RR: 5
Reply 5, posted (1 year 11 months 5 days 21 hours ago) and read 2105 times:

Quoting qf002 (Reply 4):
credit card fees

Mercifully credit card fees are illegal in the USA. The only thing you can do is offer a discount for not using a credit card but Allegiant is the only airline to do this.

I agree that they are a complete rip off though, SQ charges $25 for using a credit card through their Australian website!



Worked Hard, Flew Right
User currently offlineLAXintl From United States of America, joined May 2000, 25202 posts, RR: 48
Reply 6, posted (1 year 11 months 4 days 10 hours ago) and read 1732 times:

Yes definitively one of the larger fines I've seen over the years for such pricing violations.

I think the fact that BA failed to provide proper price and tax info to consumers at so many different locations along with their relative large size caused the fine to be so big.



From the desert to the sea, to all of Southern California
User currently offlinePe@rson From United Kingdom, joined Jan 2001, 19220 posts, RR: 52
Reply 7, posted (1 year 11 months 4 days 10 hours ago) and read 1721 times:

Quoting RyanairGuru (Reply 5):
Mercifully credit card fees are illegal in the USA.

Why don't they just call them 'administrative fees'?     



"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
User currently offlinebabybus From , joined Dec 1969, posts, RR:
Reply 8, posted (1 year 11 months 4 days 7 hours ago) and read 1583 times:

It good to see a government department actually working to protect the consumer.

Sales mal-practice has to be stumped out. I got a shock the other day when booking on BA.com that they had such a heavy credit card fee. Totally unacceptable.

Consumer confidence has to be preserved.


User currently offlineLAXintl From United States of America, joined May 2000, 25202 posts, RR: 48
Reply 9, posted (1 year 11 months 4 days 6 hours ago) and read 1518 times:

Quoting RyanairGuru (Reply 5):
Mercifully credit card fees are illegal in the USA. The only thing you can do is offer a discount for not using a credit card but Allegiant is the only airline to do this.

Not much longer.

Under the July 2012 merchant credit card litigation settlement agreement reached by banks, merchants will be able to charge a “checkout fee” between 1.5 and 3.5% of the value of the transaction when using cards like Visa and MasterCard.

All that is holding this up is final approval from the Federal judge which is expected in early 2013.



From the desert to the sea, to all of Southern California
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