Associated Press
The U.S. Department of Transportation (USDOT) is investigating possible deceptive practices in airline loyalty programs after federal lawmakers raised concerns about how companies are calculating points and rewards.
A USDOT spokesperson said in a statement that the agency is planning “to carefully review complaints regarding loyalty programs and exercise our authority to investigate airlines for unfair and deceptive practices that hurt travelers as warranted.”
The spokesperson said agency officials are actively meeting with U.S. airlines and gathering more information about the issue.
Airlines for America, which represents the largest U.S. carriers, declined to comment.
The Department is stepping up its scrutiny after two U.S. Senators asked the agency and the Consumer Financial Protection Bureau (CFPB) about the steps they’re taking to protect consumers from “deceitful marketing tactics” in frequent flyer programs.
In a letter sent to Secretary of Transportation Pete Buttigieg and CFPB Director Rohit Chopra in late October, U.S. Sens. Dick Durbin and Roger Marshall pointed to reports that suggest airlines are changing points systems — and even devaluing points — to make it harder to achieve rewards. The letter said this can stem from unilateral contracts that allow airlines to make changes to their points programs without directly notifying consumers.
Airlines design loyalty programs to keep their most lucrative customers coming back.
In October, Southwest Airlines lowered the requirement for the top levels of its frequent-flyer program to lure in travelers dissatisfied with other airlines that are making it harder to reach elite status.
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Republished with permission of The Associated Press.
6 comments
rbruce
December 26, 2023 at 10:05 am
How is this a federal regulatory problem? When did the DOT get involved in private company marketing? This unwarranted interference will result in eliminating all reward programs.
SteveHC
December 26, 2023 at 3:32 pm
No it won’t. The programs aren’t going anywhere. And yes “private company marketing” has had regulatory oversight by government agencies for decades.
Earl Pitts "Sage Expert on Everything" American
December 26, 2023 at 10:55 am
WAKE UP AMERICA !!!!!!!!
Good Morn ‘Ting America,
As you have already noticed, in your “Sage Wisdom”, this is an A. P. (Associated Press) article. And as such contains either overt or subtle mind psycoligical control tricks in order to gently push you in a “Dook 4 Brains Leftist Direction”.
Your welcome, America, I, Earl Pitts American, know there are hundreds of thousands of good honest hard working Patriots which may have been unaware and could have been converted into a shamefull “Dook 4 Brains Leftist” if not for my “Sage And Timely Warning”.
Again America You are Welcome.
Earl Pitts American
Dont Say FLA
December 26, 2023 at 11:16 am
Business travelers the only people who get enough miles to bother with these programs, but today’s businesses claim the miles as being owned by the corporation even though it was YOUR ass suffering in that awful seat for however many hours, not theirs
Richard Russell
December 26, 2023 at 11:32 am
There is no free lunch, in spite of the promises, over time the perks evaporate before your eyes. It’s all a bait and suck you into being loyal to just one or two airlines for the promise of freebees. Mayor Pete can’t keep his “family” straight, much less the transportation industries and their deceptive marketing practices to entice loyalty.
SteveHC
December 26, 2023 at 3:37 pm
Don’t expect any Earth-shattering results from this “investigation”; past government agency “investigations” essentially resulted in mere tweaks to the programs, at least from the consumer’s perspective.
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