The Transportation Department is investigating loyalty programs of major airlines to determine how these programs devalue rewards, impose hidden fees, and affect consumer choice.
Secretary Buttigieg stated that loyalty programs can be altered by companies at will, emphasizing the need for transparency and fairness to deliver promised consumer value.
The Transportation Department's inquiry looks into whether airlines are being clear about loyalty program benefits and their potential adverse effects on competition in the industry.
Given the increasing scrutiny on airline practices, regulations have been introduced requiring upfront fee disclosures and consumer refunds for canceled or delayed flights.
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