US Transportation Department looking into airline loyalty programs for potential deceptive practices

Perhaps spurred by the potential for a congressional investigation, the Department of Transportation will take a deeper dive into airline frequent flyer programs. Specifically, the DOT is looking for any unfair or deceptive practices with the loyalty cards. The government agency is also looking at the devaluation of the cards — that is, the rising number of points needed to book a free flight.

“We plan to carefully review complaints regarding loyalty programs and exercise our authority to investigate airlines for unfair and deceptive practices that hurt travelers as warranted,” a department spokesperson said. “DOT officials are actively meeting with U.S. airlines and gathering more information on this issue.” Frequent flyer miles used to be accumulated through the number of flights and number of miles flown on a certain airline.

Now, virtually every airline has an affiliated credit card on which you can gain miles just through everyday purchases. Delta Air Lines, for instance, added more than 8 million frequent flyer members last year. The loyalty cards have been under scrutiny for months by Senate Judiciary Committee chair Dick Durbin, D Ill, and Senator Roger Marshall, R Kan.

The two men have lobbied heavily for legislation against the frequent flyer programs, but the airlines, naturally, have fought against it. The lawmakers want at least two networks to offer an electronic choice in how they are processed. Many airlines also partner with other carriers to offer reciprocal points of accumulation.

________ ©2024 Northstar Travel Media, LLC. Visit at travelpulse.com. Distributed by Tribune Content Agency, LLC..