The Division of Transportation is investigating potential misleading practices in airline loyalty packages after federal lawmakers raised considerations about how firms are calculating factors and rewards.
A DOT spokesperson stated Friday in an announcement that the company 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 stated company officers are actively assembly with U.S. airways and gathering extra details about the difficulty.
Airways for America, which represents the biggest U.S. carriers, declined to remark.
The division is stepping up its scrutiny after two U.S. senators requested the company and the Shopper Monetary Safety Bureau concerning the steps they’re taking to guard shoppers from “deceitful marketing tactics” in frequent flyer packages.
In a letter despatched to Secretary of Transportation Pete Buttigieg and CFPB Director Rohit Chopra in late October, U.S. Sens. Dick Durbin and Roger Marshall pointed to experiences that recommend airways are altering factors techniques – and even devaluing factors – to make it more durable to attain rewards. The letter stated this may stem from unilateral contracts that enable airways to make adjustments to their factors packages with out immediately notifying shoppers.
Airways design loyalty packages to maintain their most profitable prospects coming again.
In October, Southwest Airways lowered the requirement for the highest ranges of its frequent-flyer program to lure in vacationers dissatisfied with other airlines that are making it harder to reach elite status.
