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DOT Fines Virgin Atlantic for Price Rules

September 27, 2011 By: George Dooley Travel Agent

The U.S. Department of Transportation (DOT)  has fined Virgin Atlantic Airways $50,000 for violating federal aviation laws and the DOT rules prohibiting deceptive price advertising in air travel.

DOT said Virgin Atlantic displayed advertisements on the Internet that did not provide direct access to information on taxes and fees that were in addition to the base fare. Instead, consumers who clicked on the advertised fare were taken to a page showing sample routes and prices where the type and amount of taxes and fees could be found in fine print only after scrolling to the bottom of the page.

“When passengers buy an airline ticket, they have a right to know the full price they will have to pay,” said U.S. Transportation Secretary Ray LaHood. “We expect airlines to treat their passengers fairly and will take enforcement action when our price advertising rules are violated.” 

Virgin Atlantic’s website violated DOT rules requiring any advertising that includes a price for air transportation to state the full price to be paid by the consumer, including all carrier-imposed surcharges. The only exception currently allowed is government-imposed taxes and fees that are assessed on a per-passenger basis, such as passenger facility charges, which may be stated separately from the advertised fare but must be clearly disclosed in the advertisement so that passengers can easily determine the full price they must pay, DOT said.

DOT said Internet fare listings may disclose these separate taxes and fees through a prominent link next to the fare stating that government taxes and fees are extra, and the link must take the viewer directly to information where the type and amount of taxes and fees are displayed. The rules apply to both U.S. and foreign carriers as well as ticket agents.

Under DOT’s recently adopted consumer rule that enhances protections for air travelers, carriers and ticket agents will be required, among other things, to include all government taxes and fees in every advertised fare beginning Jan. 24, 2012.     


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About the Author

George Dooley
George Dooley, Travel Agent’s senior contributing editor covering retail and technology, has a long-standing reputation as one of the top travel industry journalists. He notes...

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By George Dooley | September 27, 2011
Virgin's advertisements on the Internet did not provide direct access to information on taxes and fees, the U.S. Department of Transportation reports.
Filed under : government regulations