Order 2011-8-25

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

On the Thirtieth day of August, 2011

JetBlue Airways, Ltd. Docket OST 2011-0003

Served August 30, 2011

Violations of 49 U.S.C. § 41712 and 

14 CFR 399.84 

CONSENT ORDER

This consent order concerns Internet advertisements by JetBlue Airways, Ltd., (JetBlue)

that violated the advertising requirements specified in 14 CFR 399.84, as well as 49 

U.S.C. § 41712, which prohibits unfair and deceptive practices. It directs JetBlue to cease 

and desist from future violations of 399.84 and section 41712, and assesses the carrier a

compromise civil penalty of $50,000. 

Applicable Law

As an air carrier, JetBlue is subject to the advertising requirements of Part 399 of the 

Department’s rules. Pursuant to 14 CFR 399.84, carriers advertising airfares must state 

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

precedent, the Department has allowed taxes and fees 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 are levied by a 

government entity, are not ad valorem in nature, i.e., not assessed as a percentage of the 

fare price, are collected on a per-passenger basis, and their existence and amounts are 

clearly indicated at the first point in the advertisements where a fare is presented so that 

consumers can immediately determine the full fare to be paid. Thus, for example, fare 

advertisements that 1) fail entirely to identify the existence and amount of separate 

additional taxes and fees at the first point at which a fare is displayed, or 2) include only 
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general statements regarding the existence of such taxes and fees do not comply with 

section 399.84 or the Department’s enforcement case precedent. Violations of section 

399.84 constitute unfair and deceptive practices in violation of 49 U.S.C. § 41712.1

 

In print advertisements, an asterisk or other symbol placed proximate to the advertised 

fare may refer the reader to the bottom of the advertisement where the nature and amount 

of the fees that may be stated separately are shown. In Internet advertising displays, taxes 

and fees that properly may be stated separately from the advertised fare may be disclosed 

through a prominent link placed adjacent to the stated fare that notes that taxes and fees 

are extra and directly takes the viewer to the bottom of the screen, or to a pop-up or a 

place on a separate screen, where the nature and amount of taxes and fees are 

prominently and immediately displayed.2

 

Facts and Conclusions

For a period of time in early 2011, JetBlue displayed fare advertisements on several 

websites that did not provide any information on additional taxes and fees. Rather, once 

the consumer clicked on the advertisements, he or she was taken to JetBlue’s “Featured 

web fares” page where a list of routes and prices were displayed. Above that list appeared 

the statement “Taxes, fees, restrictions apply.” However, that statement was not a link 

and consumers could learn the amount of the additional taxes and fees, stated in fine 

print, only after scrolling to the bottom of the page or clicking on a link next to each of 

the listed fares. JetBlue’s failure on several websites to provide proper notice of taxes 

and fees that may legally be stated separately from the fare violates 14 CFR 399.84 

and 49 U.S.C. § 41712.

 Mitigation

JetBlue states that it strives to comply with all regulatory requirements, including the 

Department’s full-fare advertising rules. According to the carrier, after it received 

 1 See, e.g., US Airways, Inc., Violations of 49 U.S.C. § 41712 and 14 CFR 399.84, Order 2011-6-2 (June 2, 

2011); Delta Air Lines, Inc. Violations of 49 U.S.C. § 41712 and 14 CFR 399.84, Order 2010-5-30 (May 

28, 2010). 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 is effective January 24, 2012, airlines and ticket agents must include all 

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

omitting carrier- or agent-imposed charges, such as fuel surcharges or convenience fees, from advertised 

fares remains in effect.

2 For example, under current policies, a carrier or ticket agent could advertise a flight in the following 

manner: “$250 + Taxes and Fees” with the phrase “Taxes and Fees” set off as a hyperlink that takes the 

viewer directly to the bottom of the screen, or to a pop-up or a place on a separate screen, where the nature 

and amount of taxes and fees are 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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notification of the issue from the Office of Aviation Enforcement and Proceedings, 

(Enforcement Office) JetBlue removed the advertisements within hours. JetBlue states 

that this expeditious response reflects the seriousness with which JetBlue approaches its 

compliance responsibilities. JetBlue notes that it has also instituted additional training for 

its relevant personnel to explain the Department’s current requirements for advertising 

including those rules recently issued by the Department.

Decision

The Department views compliance with the Federal aviation statutes and regulations very 

seriously. The Enforcement Office has carefully considered the information provided by 

JetBlue and continues to believe that enforcement action is warranted. The Enforcement 

Office and JetBlue have reached a settlement of this matter in order to avoid litigation.

Without admitting or denying the violations described above, JetBlue consents to the 

issuance of this order to cease and desist from future violations of 49 U.S.C. § 41712 and 

14 CFR 399.84, and to the assessment of $50,000 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. 

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 JetBlue Airways, Ltd., 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, 

JetBlue Airways, Ltd., engaged in unfair and deceptive practices and unfair methods

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

4. We order JetBlue Airways, Ltd., and all other entities owned or controlled by, or 

under common ownership and control with JetBlue Airways, Ltd., its successors and 

assigns, to cease and desist from further similar violations of 14 CFR 399.84 and 49 

U.S.C. § 41712. Failure to comply with this cease and desist provision shall subject 

JetBlue Airways, Ltd., and its successors and assignees to further enforcement action;

5. We assess JetBlue Airways, Ltd. $50,000 in compromise of civil penalties that might 

otherwise be assessed for the violations described 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 $25,000 shall become due and payable immediately if JetBlue 

Airways, Ltd., violates this order’s cease and desist provisions within one-year 
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following the date of issuance of this order, or fails to comply with the order’s 

payment provisions; and

6. We order JetBlue Airways, Ltd. to remit the payment ordered in paragraph 5 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 JetBlue Airways, Ltd., to the assessment of interest, penalty, and 

collection charges under the Debt Collection Act, and to 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)

An electronic version of this document is available at 

www.regulations.gov