The department has asked the airlines to submit reports on their programs within 90 days to give the government a better understanding of how consumers "are impacted by the devaluation of earned rewards, hidden or dynamic pricing, extra fees, and reduced competition and choice," it said in a statement.
Transportation Secretary Pete Buttigieg said in the statement. "Many Americans view their rewards points balances as part of their savings; but unlike a traditional savings account, these rewards are controlled by a company that can unilaterally change their value."
Airlines for America, a trade group that represents major US carriers, said in a statement that millions of people enjoy the perks that they get from their loyalty programs. "US carriers are transparent about these programs, and policymakers should ensure that consumers can continue to be offered these important benefits," the group said.
Delta reported that it made $6.8 billion in 2023 from its credit card partnership with American Express Co., a number that it expects to grow by 10% this year and to reach $10 billion over the long term.
#airline-rewards #consumer-protection #government-regulation #loyalty-programs #transportation-policy
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