DOT Investigates Airline Loyalty Programs for Deceptive Practices
Investigation follows concerns raised by lawmakers over airlines' calculation of points and rewards.
- The Department of Transportation (DOT) is investigating potential deceptive practices in airline loyalty programs after concerns were raised by federal lawmakers.
- The investigation will focus on how airlines calculate points and rewards, with allegations of airlines changing points systems and devaluing points to make it harder for customers to achieve rewards.
- The DOT is actively meeting with U.S. airlines and gathering more information on the issue.
- Senators Dick Durbin and Roger Marshall have asked the DOT and the Consumer Financial Protection Bureau to protect consumers from 'deceitful marketing tactics' in frequent flyer programs.
- In October, Southwest Airlines lowered the requirement for the top levels of its frequent-flyer program to attract travelers dissatisfied with other airlines.