Tuesday, November 22, 2011

Spirit Airlines Hit With $50K Fine for Violating DOT Ad Rules: Too Many Steps Between Tweet for $9 Tickets and All the Fine Print and Conditions

According to Consumer Reports, "DOT rules require all price advertisements for air travel to list the full price to be paid by the consumer, including all carrier-imposed surcharges."   But, as part of a campaign over the summer, "Spirit sent Twitter feeds announcing one-way fares for $9. A consumer who clicked on the link was taken to a second Webpage where the carrier disclosed for the first time that the fare did not include all taxes and fees, and that to qualify, a roundtrip ticket had to be purchased. Only after clicking on another link was the amount of additional taxes and fees disclosed." 

Spirit Airlines Inc. was fined $50,000 for failing to list all fees and taxes on its tickets this summer, although half the penalty will be dropped if the airline avoids breaking the rules for a year.

The Department of Transportation said Monday that Spirit tweets, billboards and posters violated full-fare advertising rules that require airlines to state the full price owed by the consumer, including charges imposed by the airline.

The department said that for a short time in June, a Spirit truck-borne billboard and posters advertising flights from Los Angeles had an asterisk next to the price, leading viewers to small print that warned of additional taxes, fees and conditions -- but didn't give a figure for the charges.

Spirit also tweeted about fares of $9 each way, but Twitter users had to follow a link to learn there could be additional fees, and click on another link to learn the amount of the fees and taxes.

In a consent agreement, Spirit said the omissions were accidental.

http://www.businessweek.com

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