Order 03-04-9

Order 03-04-9

Icelandair, Inc.

Order 03-04-9
OST-03-14194

Issued and Served April 10, 2003

Consent Order

Microsoft Word

Economic Enforcement Consent Order

This consent order concerns advertisements on Icelandair’s web site and e-mail advertisements disseminated by the carrier that failed to comply with the Department’s rule on full fare advertising, 14 CFR 399.84. In a number of advertisements appearing on the Icelandair site in late 2002, the carrier stated prices for tours that did not include certain taxes and fees and failed to list such additional taxes and fees or to provide a direct link to a page that would indicate the amounts of those charges. Comparable omissions occurred in advertisements which the carrier distributed by e-mail. Moreover, certain advertisements and e-mail messages improperly stated insurance surcharges separately from the base fares. These displays and e-mail solicitations were, as a result, in violation of 14 CFR 399.84 and enforcement case precedent, and constituted an unfair and deceptive trade practice and an unfair method of competition in violation of 49 U.S.C. § 41712.

We consider any advertisement which does not comply with the full fare disclosure requirements to be in violation of both section 41712 and section 399.84, and, while we acknowledge that Icelandair has been fully cooperative in our investigation, we believe that enforcement action is warranted in this instance. Icelandair, for its part, in order to avoid litigation and without admitting or denying the alleged violations, agrees to the issuance of this order to cease and desist from future violations of 49 U.S.C. § 41712 and 14 CFR 399.84 in e-mail advertisements and on its Internet site and to an assessment of $15,000 in compromise of potential civil penalties of which one half will be payable according to the payments schedule described below. This compromise assessment is appropriate in view of the nature and extent of the violations in question and serves the public interest. This settlement, moreover, represents a deterrent to future noncompliance with the Department's advertising regulations and section 41712 by Icelandair, as well as by other sellers of air transportation.

By: Rosalind Knapp