Order 2012-2-23

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

On the First day of March, 2012

Unister USA, LLC, d/b/a Flights24.com Docket OST 2012-0002

Served March 1, 2012

Violations of 49 U.S.C. § 41712 and 

14 CFR Parts 399 and 257 

CONSENT ORDER

This consent order concerns Internet advertisements by Unister USA, LLC, d/b/a 

Flights24.com (Unister) that (1) failed to comply with the Department’s full-fare 

advertising requirements as specified in 14 CFR Part 399, and (2) failed to disclose codeshare arrangements pursuant to the requirements specified in 14 CFR Part 257 and 49 

U.S.C. § 41712(c). These failures constitute separate and distinct unfair and deceptive 

practices prohibited by section 41712(a). This consent order directs Unister to cease and 

desist from future violations of Parts 399 and 257 and section 41712 and assesses Unister

a compromise civil penalty of $30,000. 

Applicable Law

Unister is a ticket agent1 that sells air transportation and is therefore subject it to the 

advertising requirements of Part 399 of the Department’s rules and the prohibitions of 

49 U.S.C. § 41712 on engaging in unfair and deceptive practices and unfair methods of 

competition. Pursuant to 14 CFR 399.84, advertisements specifying airfares must state 

the full price to be paid by the consumer. Under long-standing enforcement case 

precedent that expired on January 25, 2012, the Department allowed taxes and fees 

 1 A “ticket agent” is “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).
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collected by carriers and ticket agents, such as passenger facility charges and departure 

taxes, to be stated separately from base fares in advertisements so long as such taxes and 

fees were levied by a government entity, were not ad valorem in nature, i.e., not assessed 

as a percentage of the fare price, were collected on a per-passenger basis, and their 

existence and amounts were clearly indicated at the first point in the advertisements 

where a fare was presented so that consumers could immediately determine the full fare 

to be paid. Carrier or ticket agent-imposed charges, such as fuel surcharges and 

administrative fees, were not permitted to be stated separately from the advertised fare, 

unless the full price including those charges was prominently displayed in the 

advertisement. Thus, for example, fare advertisements that 1) failed entirely to identify 

the existence and amount of separate additional taxes and fees at the first point at which a 

fare was displayed, 2) included only general statements regarding the existence of such 

taxes and fees, or 3) separately stated carrier-imposed fees, other than as described above,

did not comply with section 399.84 or the Department’s enforcement case precedent.2

Violations of section 399.84 constitute unfair and deceptive practices in violation of 49 

U.S.C. § 41712. 

With respect to Internet fare listings, additional charges that properly could be stated 

separately from the advertised fare were allowed to be disclosed through a prominent link 

placed adjacent to the stated fares that noted that taxes and fees were extra. The link was 

required to directly take the viewer to the bottom of the screen, to a pop-up, or to a place 

on a separate screen where the nature and amount of taxes and fees were prominently and 

immediately displayed.3

 On the other hand, carrier- or agent-imposed surcharges, e.g., 

fuel, insurance and service charges or other such costs, always had to be included as 

described above in the advertised price. 

Unister is also subject to the specific code-share requirements found in 

49 U.S.C. § 41712(c) and Part 257. Under section 41712(c), ticket agents are required to 

disclose the name of the operating carrier providing the service for each segment of a 

passenger’s itinerary “on the first display of the Web site following a search of a 

 2 On April 20, 2011, the Department issued a rule changing its enforcement policy with respect to 

section 399.84 to require that airlines and ticket agents comply with the rule as written. Under this new 

enforcement policy, which became effective January 26, 2012, airlines and ticket agents must include all 

government taxes and fees in every advertised fare. The Department’s long-standing prohibition, as 

described above, on omitting carrier- or agent-imposed charges, such as fuel surcharges or convenience 

fees, from advertised fares remains in effect.

3 For example, under the enforcement policy in effect prior to January 26, 2012, a carrier or ticket 

agent could advertise a flight in the following manner: $260 + Taxes and Fees with the taxes and fees 

language as a hyperlink that took the viewer directly to the bottom of the screen, or to the place on a 

separate screen, where the nature and amount of taxes and fees were prominently and immediately 

displayed. See Department notices entitled “Disclosure of Air Fare Variations: Web vs. Other Sources, 

Surcharges that May be Listed Separately in Advertisements,” dated November 4, 2004; “Disclosure of 

Additional Fees, Charges and Restrictions on Air Fares in Advertisements, Including ‘Free’ Airfares,” 

dated September 4, 2003; and “Prohibition on Deceptive Practices in the Marketing of Airfares to the 

Public Using the Internet,” dated January 18, 2001, available at:

http://airconsumer.ost.dot.gov/rules/guidance.htm.
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requested itinerary in a format that is easily visible to a viewer.” Additionally, section 

257.4 of the Department’s code-share disclosure rule states that the holding out or sale of 

scheduled passenger air transportation involving a code-sharing arrangement is an unfair 

and deceptive trade practice in violation of 49 U.S.C. § 41712 unless, in conjunction with 

that holding out or sale, the advertiser follows certain notice requirements, including 

those of 14 CFR 257.5(d). The specific terms of section 257.5(d) require that print 

advertisements, including those published on the Internet, “prominently disclose that the 

advertised service may involve travel on another carrier,” “clearly indicate the nature of 

the service in reasonably sized type,” and “identify all potential transporting carriers... by 

corporate name and by any other name under which that service is held out to the public.” 

Failure to disclose code-share arrangements pursuant to Part 257 and section 41712(c) 

constitutes an unfair and deceptive practice under section 41712(a). 

Facts and Conclusions

An investigation by the Office of Aviation Enforcement and Proceedings (Enforcement 

Office) revealed a significant lack of compliance by Unister with the Department’s fullfare advertising rule. From at least July 2011 through October 2011, Unister failed to 

properly disclose to consumers that additional taxes and fees applied to fares advertised 

on its Internet website, Flights24.com. Specifically, at the first point at which fares were

displayed on its website Unister failed to identify the existence and amount of additional 

taxes and fees, one of which was Unister’s service fee, which cannot lawfully be broken

out from the base fare. Such conduct violated 14 CFR 399.84 and constituted a 

prohibited unfair and deceptive practice pursuant 49 U.S.C. § 41712(a). 

Our investigation also revealed a lack of compliance by Unister with 

49 U.S.C. § 41712(c) and section 257.5 of the Department’s code-share disclosure rule. 

From at least July through September 2011, Unister failed to properly disclose the 

existence of code-sharing arrangements when advertising code-share flights operated on 

behalf of a major air carrier by a regional air carrier on its Internet website. Specifically, 

it did not display the corporate names of the transporting carriers and any other names 

under which those flights were held out to the public on its flight itinerary pages. 

Unister’s failure to properly disclose the existence of code-sharing arrangements and the 

names of the transporting carriers as required by Part 257 and section 41712(c) resulted 

in consumers having no way of knowing the identity of the airline that would actually 

operate the aircraft on which they would be flying. Such conduct violated 

49 U.S.C. § 41712(c) and Part 257 and constituted a separate and distinct a prohibited 

unfair and deceptive practice pursuant to 49 U.S.C. § 41712(a).

 Mitigation

In mitigation, Unister emphasizes its intention to fully comply with the Department's 

advertising regulations. Unister states that it is committed to providing accurate 

information to its customers and that any alleged violation was completely inadvertent. 

Unister further states that it has never been the subject of a Department enforcement 

investigation. Unister asserts that it is not aware of any consumer confusion arising from 

the conduct described in the order. Nonetheless, after Unister was contacted by the 
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Enforcement Office, it took immediate action to comply with the relevant law and has

fully cooperated with the Department. 

Unister further asserts that it has spent a significant amount of money overhauling the 

site's fare and code-share display and expects to incur additional costs to ensure future 

compliance. Unister states that it remains committed to providing its consumers with 

accurate and detailed information about the lowest fares throughout the world.

Decision

The Enforcement Office has carefully considered the information provided by Unister

and continues to believe that enforcement action is warranted. The Department views 

compliance with the Federal aviation statutes and regulations very seriously. The 

Enforcement Office and Unister have reached a settlement in this matter in order to avoid 

litigation. Without admitting or denying the violations described above, Unister consents 

to the issuance of this order to cease and desist from future violations of 49 U.S.C. § 

41712 and 14 CFR Part 399 and 257 and to the assessment of $30,000 in compromise of 

potential civil penalties otherwise due and payable pursuant to 49 U.S.C. § 46301.

This compromise assessment is appropriate considering the nature and extent of the 

violations described herein and serves the public interest. It represents a strong deterrent 

against future noncompliance with the Department’s advertising requirements by Unister 

and other ticket agents and sellers of air transportation.

This order is issued under the authority in 49 CFR 1.57a and 14 CFR 385.15.

ACCORDINGLY,

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

this order as being in the public interest;

2. We find that Unister USA, LLC, d/b/a Flights24.com violated 14 CFR 399.84 by 

advertising fares that failed to state the entire price to be paid;

3. We find that by engaging in the conduct described in ordering paragraph 2, above,

Unister USA, LLC, d/b/a Flights24.com engaged in an unfair and deceptive trade 

practice and unfair method of competition in violation of 49 U.S.C. § 41712(a);

4. We find that Unister USA, LLC, d/b/a Flights24.com violated 49 U.S.C.

§ 41712(c) and 14 CFR 257.5(d) by failing to disclose code-sharing arrangements 

as required;

5. We find that by failing to disclose code-share arrangements as required by 

49 U.S.C.§ 41712(c) and 14 CFR 257.5(d), Unister USA, LLC, d/b/a 

Flights24.com engaged in an unfair and deceptive trade practice and unfair 

method of competition in violation of 49 U.S.C. § 41712(a);
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6. We order Unister USA, LLC, d/b/a Flights24.com and all other entities owned or 

controlled by, or under common ownership and control with Unister USA, LLC,

d/b/a Flights24.com their successors, affiliates, and assignees, to cease and desist 

from further similar violations of 49 U.S.C. §§ 41712(a) and 41712(c), 14 CFR 

399.84, and 14 CFR 257.5. Failure to comply with this cease and desist provision 

shall subject Unister USA, LLC, d/b/a Flights24.com and its successors and 

assignees to further enforcement action;

7. We assess Unister USA, LLC, d/b/a Flights24.com $30,000 in compromise of 

civil penalties that might otherwise be assessed for the violations described in 

ordering paragraphs 2, 3, 4, and 5, above. Of this total amount, $15,000 will 

become due and payable in five equal installments of $3,000. The first 

installment of $3,000 is due and payable within 15 days of the issuance date of 

this order, the second installment of $3,000 is due and payable on or by May 1, 

2012, the third installment of $3,000 is due and payable on or by August 1, 2012, 

the fourth installment of $3,000 is due on or by November 1, 2012, and the fifth 

installment of $3,000 is due on or by January 1, 2013. The remaining $15,000 

shall become due and payable if Unister USA, LLC, d/b/a Flights 24.com violates 

this order’s cease and desist provisions or the payment provisions within one year 

following the date of the issuance of this order, in which case the entire unpaid 

portion of the civil penalty shall become due and payable immediately; and

8. We order Unister USA, LLC, d/b/a Flights24.com to remit the payment assessed 

in paragraph 7 above by wire transfer through the Federal Reserve 

Communications System, commonly known as "Fed Wire," to the account of the 

U.S. Treasury in accordance with the instructions contained in the attachment to 

this order. Failure to pay the penalty as ordered shall subject Unister USA, LLC,

Flights24.com to the assessment of interest, penalty, and collection charges under 

the Debt Collection Act, and to possible additional enforcement action for failure 

to comply with this order.

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

unless a timely petition for review is filed or the Department takes review on its own 

motion.

BY:

ROSALIND A. KNAPP

Deputy General Counsel

(SEAL)
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An electronic version of this document is available at 

www.regulations.gov