[USA, DoT] Feds to investigate airline loyalty programs

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[USA, DoT] Feds to investigate airline loyalty programs

Unread post by bimjim » Wed Sep 17, 2014

http://www.travelweekly.com/Travel-News ... -programs/

[USA, DoT] Feds to investigate airline loyalty programs
Bill Poling
September 16, 2014

The Transportation Department’s Inspector General is planning to audit the government’s oversight of airline frequent flyer programs to assess carrier compliance with DOT guidelines about notifying passengers of terms, conditions and costs.

In an internal memo to the DOT’s enforcement unit, the Inspector General noted that Rep. Alan Grayson (D-Fla.) requested the review earlier this year, expressing particular concern about “the lack of transparency for consumers when airlines change their frequent flyer program terms and conditions.”

The memo stated, “Accordingly, our audit objective will be to assess DOT oversight of airlines’ compliance with frequent flyer program disclosure requirements.”

The memo also noted that while DOT does not directly regulate the terms of airline loyalty programs, it does have rules requiring that airlines give adequate notice about program rules and the costs associated with booking award travel.

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