DOT CONSENT ORDERS
April 27, 2016
Porter Airlines Violations of 14 C.F.R. 399.84(a) full fare advertising rule as unfair and deceptive practice — Porter Airlines, Inc. (Porter Airlines) was fined $50,000 for multiple violations of DOT’s full fare advertising rule by Porter Escapes, a Canadian ticket agent selling pre-packaged tour products including air travel products on Porter Airlines. Porter Escapes’ website had multiple instances of display advertisements for air transportation and hotel packages from U.S. cities to Canadian destinations with prices listed “per traveler plus tax,” in violation of 14 C.F.R. Part 399, which requires any advertisement by a direct air carrier or its agent to state the entire price to be paid by a potential consumer purchasing an airfare or tour, including tax. Porter Escapes agreed to settle the matter with DOT and took remedial actions by suspending the offending marketing activity and working with its booking engine supplier to correct fare displays.
British Airways Violations of 14 C.F.R. 302.404 full fare advertising rule as unfair and deceptive practice — British Airways, PLC (British Airways) was fined $40,000 and ordered to cease and desist from future violations after a third party complaint was filed against British Airways alleging violations of DOT’s full-fare advertising rule after an inadvertent programming error prevented passengers using frequent traveler rewards to purchase one-way flights to and from the U.S. from viewing the total cost of a ticket on the carrier’s website. British Airways admitted that it had become aware of the error by a prior consumer complaint, and states that it took steps to identify and resolve the issue the next day. British Airways then reached a settlement with DOT in order to avoid litigation and in compromise of civil penalties otherwise payable pursuant to 49 U.S.C. § 46301.
Dynamic Airways Violations of 14 C.F.R. 380 public charter operation regulations, 14 C.F.R. Part 382 passengers with disabilities and Article 17 of the Montreal Convention as unfair and deceptive practice and unfair methods of competition — Dynamic Airways, Inc. (Dynamic) was fined $200,000 and ordered to cease and desist from future violations after a compliance visit at Dynamic’s headquarters revealed that, for a period of time in 2014 and 2015, Dynamic failed to ensure that passengers’ funds were deposited into the carrier’s escrow account in a timely manner. Dynamic had also cancelled a number of flights fewer than ten days from the scheduled departure without notifying DOT, and failed to notify passengers of their rights to obtain refunds for such flights in violation of 14 C.F.R. 380. Provisions in Dynamic’s operator-participant contract were found to violate Article 17 of the Montreal Convention by containing over two dozen categories of items in checked baggage for which liability was disclaimed. Article 17 of the Montreal Convention specifically prohibits carriers from disclaiming liability for valuable items. Other violations included Dynamic’s failure to adequately train Complaint Resolution Officials (CROs) and make them available to customers at each airport it serves, as well as failure to file an annual report of disability-related passenger complaints to DOT prior to 2015 under 14 C.F.R. 382. Without admitting or denying the violations, Dynamic consented to the terms of the cease and desist order issued by DOT, and to the assessment of $200,000 in compromise of potential penalties otherwise due and payable pursuant to 49 U.S.C. Section 46301.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com, 202-659-6622) or Drew Derco (dderco@eckertseamans.com, 202-659-6665).
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