VIRGIN ATLANTIC FINED FOR FULL-FARE ADVERTISING VIOLATION
April 21, 2017
DOT has fined Virgin Atlantic Airways Ltd. (Virgin) $30,000 for violations of 14 C.F.R. Section 399.84(a), which requires that the first price quote for air transportation must state the entire price to be paid by the customer. Violating the regulation constitutes an unfair and deceptive practice in violation of 49 U.S.C. § 41712. The complaint, among other assertions, states that Virgin’s description of “Taxes” on its “Rewards Flight” website did not make it sufficiently clear to consumers that the heading “Taxes” included taxes, fees and carrier-imposed surcharges. Virgin’s response argued that the “Taxes” heading was a mistake and that it was corrected the same day as the complainant’s purchase.
In issuing the penalty, DOT relied on guidance it published in February 2012 which explains that that it is an unfair and deceptive practice in violation of section 41712 to include carrier-imposed surcharges and other fees not imposed by a government under the label of “taxes,” or under the label “taxes and fees”. Virgin neither admitted nor denied the violations described above when it consented to a cease and desist order from DOT in addition to the $30,000 fine.
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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