TAME LINEA AEREA DEL ECUADOR – CONSENT ORDER (FULL FARE ADVERTISING)
June 25, 2018
On May 22, 2018, the Department of Transportation fined TAME Linea Aerea del Ecuador (TAME) for violating of 14 CFR Part 399 and 49 U.S.C. § 41712. Specifically, TAME violated the full fare advertising rule.
During an investigation by the Office of Aviation Enforcement and Proceedings (Enforcement Office), staff members created multiple sample itineraries to determine whether TAME routinely charged consumers a total price that was higher than the first quoted price displayed to consumers. TAME’s practice of charging consumers a higher total price than the first price quoted to consumers during the booking process constitutes a violation of 14 CFR 399.84(a), thus exercising unfair and deceptive practices and unfair methods of compensation.
In order to avoid litigation, TAME agreed to settle the matter with DOT’s Enforcement Office and enter into a consent order which directed the carrier to cease and desist from future similar violations of 14 CFR Part 399 and 49 U.S.C. § 41712, as well as a $130,000 compromise in civil penalties.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com or 202-659-6622); Drew Derco (dderco@eckertseamans.com or 202-659-6665), or Alexander Matthews (amatthews@eckertseamans.com or 202-659-6633).
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