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:
Consumer Protection in Online Discount Voucher Sales with Paul Kominers
We evaluate five areas where online discount voucher services — Groupon and similar sites — risk falling afoul of applicable consumer protection law. We present applicable laws from selected states and evaluate compliance by voucher services and their affiliated merchants. We examine voucher services’ attempts to limit their liability, and we explain why consumers and regulators should find current practices insufficient.
Details, including specific legal requirements, vendors’ practices, and assessing responsibility:
Adverse Selection in Online ‘Trust’ Certifications and Search Results
Edelman, Benjamin. “Adverse Selection in Online ‘Trust’ Certifications and Search Results.” Electronic Commerce Research and Applications 10, no. 1 (January-February 2011): 17-25.
Widely used online “trust” authorities issue certifications without substantial verification of recipients’ actual trustworthiness. This lax approach gives rise to adverse selection: the sites that seek and obtain trust certifications are actually less trustworthy than others. Using an original dataset on web site safety, I demonstrate that sites certified by the best-known authority, TRUSTe, are more than twice as likely to be untrustworthy as uncertified sites. This difference remains statistically and economically significant when restricted to “complex” commercial sites. Meanwhile, search engines create an implied endorsement in their selection of ads for display, but I show that search engine advertisements tend to be less safe than the corresponding organic listings.