Order 2014-2-14

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

On the Twentieth day of February, 2014

 Global Target International Inc., d/b/a 

 GTS Globotours

Docket DOT-OST 2014-0001

 Violations of 49 U.S.C. § 41712 and 

 14 CFR Part 399 

 Served February 20, 2014

CONSENT ORDER

This consent order concerns advertisements by Global Target International Inc., d/b/a 

GTS Globotours (collectively Globotours), that violate the requirements specified in 

Part 399 of the Department’s regulations, and constitute unfair and deceptive trade 

practices in violation of 49 U.S.C. § 41712. An investigation by the Department’s 

Office of Aviation Enforcement and Proceedings (“Enforcement Office”) revealed that

Globotours’ advertisements for air tours violated 14 CFR 399.84(a), 399.88 and 399.89, 

by failing to state the full fare and impermissibly stating that the advertised prices were 

subject to post-sale price increases even after final payment. The advertising violations 

also constituted unfair and deceptive practices in violation of section 41712. This order 

directs Globotours to cease and desist from future violations and assesses the company a 

compromise civil penalty of $80,000. 
2

Applicable Law

As a ticket agent,1 Globotours is subject to the prohibition on engaging in unfair and 

deceptive practices set forth in 49 U.S.C. § 41712 and to the advertising requirements of 

Part 399 of the Department’s rules. To ensure that consumers are not deceived and are 

given accurate and complete fare information on which to base their air travel purchase 

decisions, 14 CFR 399.84(a) requires that advertisements specifying airfares and tour 

package prices with an air component state the entire price to be paid by the consumer. 

Although charges included within the single total price listed, e.g., government-imposed 

fees and taxes, may be described separately or through links or “pop ups” on websites 

that display the total price, such descriptions may not be false or misleading, may not be 

displayed as prominently as the full price, may not be presented in the same or larger size 

as the total price, and must provide cost information on a per passenger basis that 

accurately reflects the cost of the item covered by the charge. It follows that significant 

restrictions on the price of an air fare or air tour package, such as double occupancy, 

single supplements, cash only prices, and conditions on availability, must be properly 

disclosed with the pertinent advertised fares.2 

In addition, under section 399.88, in effect since January 26, 2012, a seller of air 

transportation may not increase the price of an air fare or air tour package after the 

consumer has paid in full unless the seller has provided notification of potential price 

increases, and the consumer has given written consent to the assessment of such increases 

prior to making full payment. Further, only price increases due to increases in 

government taxes or fees may be passed on to consumers after they have made full 

payment.3 Under section 399.89, the seller must provide notification and obtain the 

consumer’s written consent before any payment is made in order to be permitted to 

increase the price later based on increases in carrier-imposed fees or charges.4

 Violations 

 1 A “ticket agent” is defined as “a person (except an air carrier, a foreign air carrier, or an 

employee of an air carrier or foreign air carrier) that as a principal or agent sells, offers for sale, 

negotiates for, or holds itself out as selling, providing, or arranging for, air transportation.” 49 

U.S.C. § 40102(a)(45).

2

 See Bloomspot, Inc., Order 2013-7-27 (July 31, 2013); British Airways, Order 2012-10-1 

(October 1, 2012); Lion World Travel d/b/a South African Airways Vacations, Order 2010-9-5 

(Sept. 3, 2010) and Unique Vacations, Inc., Order 2010-11-7 (Nov. 8, 2010). The Enforcement 

Office views a double occupancy requirement as an element of the price of an air fare or air tour 

package, which must be disclosed prominently and proximately to the advertised fare. 

3 Section 399.88 prohibits sellers of air transportation from imposing any “increase [in] the 

price of that air transportation, tour or tour component to a consumer, including but not limited to 

an increase in the price of the seat, an increase in the price for the carriage of passenger baggage, 

or an increase in an applicable fuel surcharge, after the air transportation has been purchased by 

the consumer, except in the case of an increase in a government-imposed tax or fee.”

4 Under section 399.89, sellers of air transportation “must notify a consumer of the 

potential for a price increase that could take place prior to the time that the full amount agreed 

upon has been paid by the consumer, including but not limited to an increase in the price of the 
3

of sections 399.84(a), 399.88, and 399.89 (and the previous full fare rule, section 399.84), 

constitute unfair and deceptive practices and unfair methods of competition in violation 

of section 41712. 

Background and Relevant Facts

Globotours is a ticket agent that specializes in offering packages which include airfares, 

hotel accommodations, guided tours, cruises and related amenities, particularly to China, 

India, Singapore and other countries in the Far East. Globotours promotes its air travel 

packages through e-mail solicitations, subscriptions, and advertisements published on 

various web sites, including www.globotours.net. 

An investigation by the Enforcement Office revealed that during 2012 and 2013, 

Globotours published daily advertisements on its own and other web sites, promoting air 

tour packages, combining airfares, hotel, cruises, land tours, and related amenities that 

did not include the entire price to be paid by the consumer and, therefore, failed to meet 

the requirements of 14 CFR 399.84(a). The prices advertised by Globotours for its air 

package tours failed to include service and/or booking fees and failed to disclose that 

numerous significant restrictions applied. For example, the prices required double 

occupancy, or the payment of a single supplement, which must be disclosed prominently 

and proximately to the advertised fare. Globotours also advertised air tour package

prices that did not include “departure taxes, airline security fees, fuel surcharges, airport 

fee and local taxes”5 in violation of the full-fare advertising rule.

In addition, the Globotours web site advertised prices with a statement that: “Tour 

prices include current fuel surcharges & US departure taxes of approx. $414.00 per 

person.” However, further down on the web page the following language appeared: 

“All tour prices include cost of planning, booking and operations and are subject to 

change without prior notice.” In connection with certain air tour packages, after 

consumers had paid the initial required deposit, Globotours informed consumers that 

there would be a price increase, for example, due to an increase in a fuel surcharge, and 

that the only way to avoid that increase was to pay the full amount of the trip 

immediately. It is impermissible under the Department’s regulations to advertise less 

than the full fare or to impose additional charges after a consumer has paid for an air 

 

seat, an increase in the price for the carriage of passenger baggage, an increase in an applicable 

fuel surcharge, or an increase in a government-imposed tax or fee and must obtain the consumer's 

written consent to the potential for such an increase prior to accepting any payment for the 

scheduled air transportation, or tour or tour component that includes scheduled air transportation.

Imposition of any such increase without providing the consumer the appropriate notice and 

obtaining his or her written consent to the potential increase constitutes an unfair and deceptive 

practice.”

5

 The Globotours website contained a “Terms and Conditions” section which stated: “NOT 

INCLUDED: ‘...departure taxes, airline security fees, fuel surcharges, airport fee and local 

taxes.’ ” 
4

tour package unless, before accepting payment, the ticket agent has obtained written 

consent by the consumer to price increases. The failure to state the full price is a 

violation of 14 CFR 399.84(a), and imposing additional fees or surcharges after the 

purchase, as described above, does not comply with 14 CFR 399.88 or 399.89. By 

violating sections 399.84(a), 399.88, and 399.89, Globotours also engaged in unfair and 

deceptive practices in violation of 49 U.S.C. 41712.

Statement in Mitigation

In mitigation and explanation, Globotours states that it is a small travel agency owned 

by husband and wife with only five other employees. Globotours asserts that at all times 

it had endeavored to comply with the DOT’s regulations, and takes these obligations 

seriously. Globotours further explains that, immediately upon receiving the 

Department’s letter of investigation, the firm reviewed its web pages to ensure that all 

air tour package prices posted on Globotours web site, www.globotours.net, were allinclusive, and it made any necessary changes within two weeks. As a result, the ticket 

agent states, all Globotours’ advertising now clearly states the entire price, including all 

taxes, fees and carrier-imposed surcharges. Globotours adds that further revisions to the 

terms and conditions language were made promptly after informal discussions with the 

Enforcement Office. As a result of these remedial steps, Globotours avows that it is 

now fully compliant with the Department’s rules and guidance. 

Globotours adds that it understands that the Department’s objective in its fare 

advertising rules and prohibition on post-purchase increases in charges is to protect 

consumers from deceptive advertising practices. Globotours states that it has never 

attempted to deceive the public. As of this date, Globotours repeats that it has yet to 

receive a single complaint from a consumer regarding air tour package pricing, 

advertising or Globotours’ terms and conditions for air tour packages. 

Findings and Decision

The Enforcement Office has carefully considered all of the information available to it, 

including that provided by Globotours, but continues to believe that enforcement action 

is warranted. In order to avoid litigation, the Enforcement Office and Globotours have 

reached a settlement in this matter. While neither admitting nor denying the above 

allegations, Globotours accepts the findings and conclusions stated herein in order to 

avoid potential litigation, and agrees to cease and desist from further violations of 

14 CFR 399.84(a), 399.88, and 399.89, and 49 U.S.C. § 41712. Under this order, 

Globotours is assessed $80,000 in compromise of potential penalties otherwise 

assessable under the provisions of 49 U.S.C. § 46301. This is appropriate in light of the 

nature and extent of the violations in question and will provide an effective deterrent to 

unlawful conduct in the future by Globotours and other sellers of air transportation. 

This order is issued under the authority contained in 49 CFR Part 1. 
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ACCORDINGLY,

1. Based on the above discussion, we approve this settlement and the provisions of 

this order as being in the public interest;

2. We find that Global Target International Inc., d/b/a GTS Globotours violated 14 

CFR 399.84(a) as described above, by publishing advertisements that failed to 

state the entire price to be paid by the consumer to the ticket agent for certain air 

transportation; 

3. We find that Global Target International, Inc., d/b/a GTS Globotours, violated 14 

CFR 399.88 and 399.89, as described above, by requiring payment of additional 

fees and charges after the consumer paid the advertised price; 

4. We find that by engaging in the conduct described in paragraphs 2 and 3, above, 

Global Target International, Inc., d/b/a GTS Globotours, engaged in an unfair 

and deceptive practice in violation of 49 U.S.C. § 41712; 

5. We order Global Target International, Inc., d/b/a GTS Globotours, and all other 

entities owned and controlled by, or under common ownership and control with

Global Target International, Inc., d/b/a GTS Globotours, and their successors and 

assignees, to cease and desist from future violations of 14 CFR 399.84(a), 

399.88, and 399.89, and 49 U.S.C. § 41712;

6. Global Target International, Inc., d/b/a GTS Globotours is assessed $80,000 in 

compromise of civil penalties that might otherwise be assessed for the violations 

found in ordering paragraphs 2 through 4 of this order. Of the total penalty 

amount, $5,000 is due and payable within 15 days of the date of issuance of this 

order; another $5,000 is due and payable by May 1, 2014; 12 additional 

payments of $2,500 apiece are due and payable on the first of the months of 

June, July, August, September, October, November and December, 2014, as well 

as January, February, March, April and May, 2015. The remaining portion of the 

civil penalty amount, $40,000, shall become due and payable immediately if 

Global Target International, Inc., d/b/a GTS Globotours violates this order's 

cease and desist provision within twelve months following the date of issuance 

of this order, or fails to comply with the order's payment provisions; 

7. Failure to pay the compromise assessment as ordered shall subject Global Target 

International, Inc., d/b/a GTS Globotours to the assessment of interest, penalty, 

and collection charges under the Debt Collection Act, and to possible further 

enforcement action for failure to comply with this order; and

8. We order Global Target International, Inc., d/b/a GTS Globotours to pay the 

penalty through Pay.gov to the account of the U.S. Treasury. Payment shall be 
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made in accordance with the instructions contained in the Attachment to this 

order. 

This order will become a final order of the Department 10 days after its service unless a 

timely petition for review is filed or the Department takes review on its own motion.

BY:

BLANE WORKIE

Acting Assistant General Counsel for

Aviation Enforcement and Proceedings

An electronic version of this document is available

at www.regulations.gov