Who benefits from Bitcoin? Not savvy customers who would otherwise pay by credit card with cashback or loyalty points. I sketch the arithmetic in today’s post.
Consumers Pay More when They Pay with Bitcoin. PYMNTS.COM, May 20, 2014.
Middle East Airlines – price advertising violations
Complaint. Answer. Docket and public comments.
Status: Consent order. $10,000 penalty.
Summary: mischaracterizing surcharges as “tax”
Tarom – price advertising violations
Complaint. Answer and supplemental submission. Docket and public comments.
Status: Dismissal.
Summary: mischaracterizing surcharges as “tax”
Air Europa – price advertising violations
Complaint. Answer. Edelman Reply. Air Europa Motion to Strike. Docket and public comments.
Status: Consent order. $100,000 penalty.
Summary: mischaracterizing surcharges as “tax”
American Airlines – price advertising violations (December 2013)
Complaint. Answer. Docket and public comments.
Status: Consent order. $65,000 penalty. (Consolidated with complaints from two other passengers)
Summary: price advertising violations including mischaracterizing surcharges as “tax”
Misrepresentation of Fuel Surcharges in Airline Price Advertising with Xiaoxiao Wu
Air travel tickets often include surprisingly large amounts described as “tax.” In one round trip New York-Paris ticket we quoted in January 2012, the fare was listed as $230 while “tax” was listed as $598.14 — fully 72% of the listed total. If government taxes were actually as large as Air France claims, many passengers might want to complain to responsible politicians and regulators. And passengers might have a different view of cramped seating, unpalatable food, or other service shortfalls on a $230 ticket versus a $828.14 ticket. But in fact, specifically contrary to Air France’s characterization of $598.14 as “tax,” the majority of the “tax” was not charged by any government, airport, or similar authority, and rather was retained by Air France to defray its ordinary operating expenses.
Our investigation uncovers a variety of examples in which airlines have mischaracterized various surcharges as “tax” and otherwise failed to satisfy applicable price advertising regulation. We present proof in both screenshots and recorded telephone calls, preserving clear records of carriers’ misrepresentations. Details:
Misrepresentation of Fuel Surcharges in Airline Price Advertising
American Airlines – price advertising violations (February 2013)
Complaint. Answer. Edelman Reply. American Surreply. Edelman supplemental filing. American response and supplemental response. Docket and public comments.
Status: Consent order. $60,000 penalty.
Summary: price advertising violations including mischaracterizing surcharges as “tax”
Cathay Pacific – price advertising violations
Complaint. Answer and Oneworld answers to questions. Docket and public comments.
Status: Consent order.
Summary: mischaracterizing surcharges as “tax”
British Airways – price advertising violations (2013)
Complaint. Answer. Edelman Reply. British Airways Surreply. Docket and public comments.
Status: Consent order.
Summary: price advertising violations including a “fuel surcharge” in excess of cost of fuel
Online Discount Vouchers – Letter-Writing Tool with Paul Kominers and Xiaoxiao Wu
Following up on my recent article about consumer protection problems in discount voucher sales, I’ve posted a letter-writing tool to help consumers resolve their voucher problems. From expiration to cashback to day-of-week, time-of-day, and unexpected terms added after purchase, there are quite a few ways consumers can end up dissatisfied with the discount vouchers they buy. Many voucher services offer refunds only if consumers complain vigorously. Our tool helps consumers write concise but persuasive letters, including drawing on applicable state law where appropriate.
Give it a try: