The US Department of Transportation (DOT) has launched an inquiry into the US 'big four' carriers for potentially ""unfair, deceptive, or anticompetitive practices"".
The probe is focussed on the devaluation of earned rewards, hidden or dynamic pricing, extra fees, and reduced competition or choice have impacted customers' loyalty programmes.
US secretary of transportation Pete Buttigieg ordered American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines to provide records and reports on their reward programmes. This includes detailed information on practices and policies.
""Points systems like frequent flyer miles and credit card rewards have become such a meaningful part of our economy that many Americans view their rewards points balances as part of their savings,"" said Buttigieg.
Loyalty programmes are also an important segment to airlines, allowing them to utilise such programmes to raise funds.
Buttigieg continued: ""But unlike a traditional savings account, these rewards are controlled by a company that can unilaterally change their value. Our goal is to ensure consumers are getting the value that was promised to them, which means validating that these programs are transparent and fair.""
DOT said it has the authority to take action against airlines for anticompetitive and unfair practices. In the letter sent to the big four, it ordered that a special report is filed ""no later than 90 days"" after receiving the notice.
US probes 'big four' carriers' loyalty programs for ""deceptive"" practices
