(Trinidad Express) State carrier Caribbean Airlines (CAL) has been fined US$40,000 for what the United States Department of Transportation described as unfair and deceptive advertising.
But an order served by the department in Washington, DC to CAL on December 2 instructed the airline to pay only US$20,000 within 30 days of the issue of the order and a further US$20,000 if it made a similar violation within 12 months.
The report sent to the Express indicated that foreign air carriers, including CAL, are subject to the advertising requirements of the department’s rules.
The false advertising is said to have occurred on the airline’s website.
“Between March 2010 and July 2010, CAL posted Internet fare advertisements on its website that quoted prices for numerous air fares that did not include applicable fuel surcharges. By failing to include fuel surcharges in its base fare, CAL violated 14 CFR 399.84 and engaged in an unfair and deceptive practice and unfair method of competition in violation 49 USC,” the report said.
“Moreover, the September 11 Security Fee was one of the additional taxes and fees that was not included in the advertised price and was not disclosed as required which constitutes a separate and distinct violation of 41712.”
The report said CAL blamed a third party vendor for the advertising violation.
“In mitigation, CAL states that the failure of its Internet booking engine to display properly all fare components in accordance with department policy was unintentional, as CAL had relied on a new, third-party booking vendor’s assurances that the booking engine would so comply,” the report said.
“When the Enforcement Office advised CAL of its concerns, CAL stated that it immediately directed its vendor to remove the functions at issue and worked with that vendor to modify them.”
CAL officials have not officially returned phone calls seeking comment on the issue.
