Benjamin Edelman

Complaint

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BEFORE THE DEPARTMENT OF TRANSPORTATION

OFFICE OF AVIATION ENFORCEMENT AND PROCEEDINGS

WASHINGTON, D.C.

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)

Benjamin Edelman, )

 third-party complainant )

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v. ) Docket DOT-OST-2013-____

)

American Airlines, Inc. ) 

)

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COMPLAINT OF BENJAMIN EDELMAN

Comments with respect to this document should be addressed to:

Benjamin Edelman

169 Walnut St.

Brookline, MA 02445

E-mail: ben@benedelman.org

Dated: December 12, 2013
Benjamin Edelman

Complaint

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BEFORE THE DEPARTMENT OF TRANSPORTATION

OFFICE OF AVIATION ENFORCEMENT AND PROCEEDINGS

WASHINGTON, D.C.

---------------------------------------------------------------)

)

Benjamin Edelman, )

 third-party complainant )

)

v. ) Docket DOT-OST-2013-____

)

American Airlines, Inc. ) 

)

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COMPLAINT OF BENJAMIN EDELMAN

1. In my complaint of February 4, 2013, I alleged that American Airlines 

staff and systems repeatedly mischaracterize certain carrier-imposed fees as “tax.” I 

substantiated that allegation with screenshots, receipts, email correspondence, call 

recordings, my personal first-hand experience, and the experience of others. 

2. In its Consent Order of December 11, 2013, DOT affirmed that the 

practices at issue are indeed unfair and deceptive. DOT ordered AA to cease these 

practices, and AA confirmed having done so. Inexplicably, and contrary to its 

representation in the Consent Order, AA continues similar practices to this day.

3. Specifically, in my testing, AA.COM now systematically mischaracterizes 

carrier-imposed surcharges as “tax” on award bookings, and AA.COM further 

systematically falsely states that these bookings have zero “carrier imposed surcharges” 

when that is not the case.
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4. On December 11, 2013, I requested one-way business class award travel 

from Boston to London. I was quoted a price of 50,000 miles plus $438.20. See Exhibit 

1. I clicked “Show Trip Details” and received the screen shown in Exhibit 2. The 

resulting itemization declared that “Taxes” were “$438.20” and “Carrier-Imposed Fees” 

were “$0.00.” On information and belief, the overwhelming majority of the $438.20 is 

carrier-imposed surcharge, not “tax.” For paid travel on the same routing, the ITA 

Matrix tool indicates that AA charges a $414 YR surcharge.

5. On December 11, 2013, I requested one-way coach award travel from 

Boston to London. I was quoted a price of 20,000 miles plus $253.20. I clicked “Show 

Trip Details” and received the screen shown in Exhibit 3. The resulting itemization 

declared that “Taxes” were “$253.20” and “Carrier-Imposed Fees” were “$0.00.” On 

information and belief, the overwhelming majority of the $253.20 is carrier-imposed 

surcharge, not “tax.” For paid travel on the same routing, the ITA Matrix tool indicates 

that AA charges a $229 YR surcharge.

6. On December 12, 2013, I requested round-trip coach award travel from 

Washington Dulles to London. I was quoted a price of 40,000 miles plus $692.30. I 

clicked “Show Trip Details” and received the screen shown in Exhibit 4. The resulting 

itemization declared that “Taxes” were “$692.30” and “Carrier-Imposed Fees” were 

“$0.00.” On information and belief, the overwhelming majority of the $692.30 is carrierimposed surcharge, not “tax.” For paid travel on the same routing, the ITA Matrix tool

indicates that AA charges a $458 YR surcharge.

7. All of the statements at issue were literally false. They were not merely 

unfair or deceptive; rather, they were false. Specifically, the AA.COM fare quote
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unambiguously claimed that taxes apply in an amount that is simply not true. 

Furthermore, the AA.COM fare quote unambiguously claimed that carrier-imposed fees 

are not charged when that, too, is not correct. 

8. Others have noted the same problem. Specifically, on the popular 

discussion forum FlyerTalk, a user with username “billgrates3” reported substantially the 

same false statements on AA.COM. See http://www.flyertalk.com/forum/21950356-

post15.html . 

9. The misrepresentations at issue cause consumers to believe that their 

AAdvantage miles are more valuable than is actually the case. If a reasonable consumer 

were told that his redemption required payment of a carrier-imposed surcharge of several 

hundred dollars, the consumer would place a reduced value on AAdvantage miles.

10. The Consent Order in DOT-OST-2013-0024 (order 2003-12-6) provides 

in part that “American consents to the issuance of an order to cease and desist from 

future similar violations of 49 U.S.C. § 41712 and 14 CFR 399.84(a)” (emphasis added). 

These obligations apply immediately, and American is not in compliance. 

11. Compared to the conduct flagged in my prior complaint, the practices here 

at issue are importantly worse. The practices here at issue are entirely automated and 

cannot be attributed to agent error. (In contrast, a portion of my prior compliant resulted 

from agents’ oral statements.) The practices here at issue are statements prior to 

purchase, more likely to influence consumers’ purchases. (In contrast, a portion of my 

prior complaint resulted from receipts provided after purchase and customer 

correspondence occurring after purchase.) The practices here at issue include both a false 
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statement of tax and an affirmative false statement of (lack of) carrier-imposed fees. (In 

contrast, my prior complaint resulted only from false statements of tax.)

12. I ask that the Department of Transportation:

(1) Exercise its authority under 49 USC 41712 to open an investigation of 

American Airlines for having engaged in, and continuing to engage in, 

the unfair or deceptive practices described above;

(2) Pursuant to such investigation, order American Airlines to refund to 

ticket purchasers all monies represented to ticket purchasers as “taxes” 

or government-imposed fees, but not actually remitted to governments;

(3) Impose appropriate civil penalties on American Airlines; and 

(4) Refer this matter to appropriate US and foreign tax collection agencies 

for investigation of possible tax fraud or other violations of tax law in 

non-payment to governments of monies collected as “taxes” or 

government-imposed fees.

I suggest that when DOT imposes monetary penalties for this further violation,

DOT should consider the fact that the 2013-12-6 Consent Order specifically requires that 

AA permanently cease and desist from precisely these practices. A heightened penalty is 

appropriate in light of American’s sophistication and size, the duration of the practices at 

issue, the continuation of these practices after consumer complaints, the continuation of 

these practices after DOT inquiry, the continuation of these practice after AA had 

specifically promised DOT that these practices had ceased (and had entered into a formal 
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binding consent order to that effect), and AA’s ongoing refusal to refund affected 

passengers the amounts which AA has falsely characterized as “tax.”

Respectfully submitted,

/s/

Benjamin Edelman
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Attachment 1
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Attachment 2
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Attachment 3

Attachment 4
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Certificate of Service

I hereby certify that I have, this 12th day of December, 2013 caused a copy of the 

foregoing Complaint to be served by electronic mail on the following persons:

Robert Silverberg, Esq. rsilverberg@sgbdc.com

Samuel Podberesky, Esq. sam.podberesky@dot.gov

/s/

_____________________

Benjamin Edelman