VIETNAM AIRLINES JSC – CONSENT ORDER (FULL FARE ADVERTISING)
June 27, 2018
On May 22, 2018, the Department of Transportation fined Vietnam Airlines JSC (Vietnam Airlines) for violating 14 CFR Part 399 and 49 U.S.C. § 41712. Specifically, Vietnam allegedly violated DOT’s consumer protection regulations regarding full fare advertising.
For several months in 2017, Vietnam Airlines’ U.S.-facing website, on its homepage and a subsequent page linked from the homepage, displayed fare advertisements which included base fares but did not include taxes and fees. Whereas the advertisements on the home page only listed base fares, the subsequent page displayed the following disclaimer below each list of advertised fares: “Airfare + Fuel Surcharge + taxes and the public utilities’ charge.” However, the webpage did not list specific figures for taxes or fees. Thus, the web advertisements displayed only partial fares, in violation of 14 CFR 399.84(a).
Additionally, in its booking process, Vietnam Airlines’ website displayed a carrier-imposed “Passenger Surcharge” in a breakdown menu under the labels “Taxes.” Including carrier-imposed surcharges and other carrier fees not imposed by a government under the label of “taxes,” or under the label “taxes and fees,” is misleading a violated 14 CFR 399.84(a).
In order to avoid litigation, Vietnam Airlines 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 $65,000 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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