Order 2011- 9-13

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C.

Issued by the Department of Transportation

On the Sixteenth day of September 2011

Lowestfare.com, LLC DOT OST-2011-0003

Served September 16, 2011

Violations of 14 CFR Part 257 and

 49 U.S.C. § 41712

CONSENT ORDER

This consent order concerns violations by Lowestfare.com, LLC (Lowestfare), an online 

ticket agent, of the Department’s code-share disclosure rule, 14 CFR Part 257, and the 

statutory prohibition against unfair and deceptive practices, 49 U.S.C. § 41712. It also 

directs Lowestfare to cease and desist from future violations of Part 257 and section 

41712 and assesses it a $50,000 civil penalty.

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, air carriers and ticket agents follow 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.” 

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

Office) revealed a lack of compliance by Lowestfare with section 257.5. For a period of 

time during 2010, Lowestfare 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 or the initial page on which 

fares were advertised to the public. Lowestfare’s failure to properly disclose the 
2

existence of code-sharing arrangements and the names of the transporting carriers could 

have deceived consumers regarding the identity of the airline that actually operated the 

aircraft on which they flew.

In mitigation, Lowestfare states that it did not intend to violate any applicable statute, 

regulation, or policy. Lowestfare states that it takes its compliance obligations very

seriously and actively endeavors to ensure compliance with all DOT requirements, as 

well as to proactively address any concerns voiced by consumers.

Lowestfare states that at the relevant time, it understood that its practices were in 

compliance with the existing requirements, i.e., for code-share flights, Lowestfare 

attempted to inform consumers of the identity of the operating carrier prior to booking.

Lowestfare explains that section 257.5 does not state that code-share disclosures must be 

made as part of the initial results presented in the online booking process, nor had the 

Department so specified in public guidance. Lowestfare states that once it was made 

aware of the Department’s concerns, it responded swiftly, and revised its displays

accordingly within 10 days on both www.airfares.com and related sites. Lowestfare also 

states that it has fully cooperated with the Department in this investigation in all respects.

Lowestfare states that its exemplary compliance disposition, in regard to code-share 

disclosures (and generally), is further demonstrated by events that occurred later in the 

year after new code-share requirements were imposed by Congress when it enacted 

49 U.S.C. § 41712(c), which specifically requires disclosure in initial search results.

Lowestfare states that it updated its displays to comply with the new statute before public 

guidance was issued by the Department, and long before the deadline set by the 

Department for ticket agents to comply. 

Lowestfare states that because of the lack of clear guidance provided to the public and the

improbability that an identical violation would occur in the future due to a change of law,

it believes that enforcement action was not warranted. Lowestfare, however, explains 

that in the interest of resolving this matter, and to demonstrate its ongoing commitment to 

providing full, fair, and transparent information to consumers, Lowestfare has agreed to

enter into this order.

We view seriously the failure of Lowestfare to disclose code-sharing arrangements as 

required by 14 CFR Part 257. Accordingly, after carefully considering all of the facts in 

this case, including those set forth above, the Enforcement Office believes that 

enforcement action is warranted. In order to avoid litigation, Lowestfare agrees to the 

issuance of this order to cease and desist from future similar violations of Part 257 and

49 U.S.C. § 41712 and to the assessment of $50,000 in compromise of potential civil 

penalties otherwise assessable against it. We believe that this compromise assessment is 

appropriate in view of the nature and extent of the violations in question, serves the 

public interest, and provides a meaningful incentive to all airlines and ticket agents to 

comply with the Department’s code-share disclosure rule.
3

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

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 Lowestfare.com, LLC, violated 14 CFR 257.5(d) by failing to disclose 

code-sharing arrangements as required;

3. We find that by engaging in the conduct and violations described in ordering 

paragraph 2 above, Lowestfare.com, LLC, engaged in an unfair and deceptive practice 

and unfair method of competition in violation of 49 U.S.C. § 41712;

4. We order Lowestfare.com, LLC, and all other entities owned or controlled by or 

under common ownership with Lowestfare.com, LLC, and its successors and assignees to 

cease and desist from further violations of 14 CFR Part 257 and 49 U.S.C. § 41712;

5. We assess Lowestfare.com, LLC, $50,000 in civil penalties in compromise of civil 

penalties that might otherwise be assessed for the violations found in ordering paragraphs 

2 and 3 above. Of this total penalty amount, $25,000 shall be due and payable within 30 

days of the date of issuance of this order. The remaining portion of the civil penalty

amount, $25,000, shall become due and payable if, within one year of the date of issuance 

of this order, Lowestfare.com, LLC, violates this order’s cease and desist provisions or 

fails to comply with this order’s payment provisions, in which case Lowestfare.com, 

LLC, may become subject to additional enforcement action for violation of the order; and

6. Payment shall be made 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 will subject Lowestfare.com, LLC, to the assessment 

of interest, penalty and collection charges under the Debt Collection Act and to possible 

enforcement action for failure to comply with this order.
4

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)

An electronic version of this document is available on the World Wide Web at

www.regulations.gov