Order 2011-2-6 

 UNITED STATES OF AM ERICA 

 DEPARTM ENT OF TRANSPORTATION 

 OFFICE OF THE SECRETARY 

 WASHINGTON, D.C. 

Issued by the Department of Transportation 

On the Ninth day of February, 2011 

 

Tour Beyond, Inc., d/b/a China Spree 

Travel 

 

 Docket DOT-OST 2011-0003 

 

Violations of 49 U.S.C. § 41712 and 

 14 CFR 399.84 and 399.80(f) Served February 9, 2011

 

CONSENT ORDER

This consent order concerns violations by Tour Beyond, Inc., d/ b/ a China Spree

Travel (“ China Spree Travel” ), of the Department’s advertising requirements 

specified in sections 399.84 and 399.80(f) of the Department’s regulations 

(14 CFR 399.84, and 399.80(f)) that also constitute unfair and deceptive trade 

practices and unfair methods of competition in violation of 49 U.S.C. § 41712. 

This order directs China Spree Travel to cease and desist from future violations 

and assesses the company a compromise civil penalty of $35,000. 

China Spree Travel, as a ticket agent selling air tour packages, including air and 

cruise package tours, is subject to the advertising requirements of Part 399 of the 

Department’s rules. Under 14 CFR 399.84, any advertising that states a price for 

air transportation or an air tour is considered to be an unfair or deceptive 

practice in violation of 49 U.S.C. § 41712 unless the price stated is the entire price 

to be paid by the customer to the air carrier or ticket agent for such air 

transportation, tour or tour component. However, pursuant to its enforcement 

case precedent, the Department has permitted air carriers and ticket agents to 

state separately from the advertised price taxes and fees imposed by a 
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government on a per-passenger basis, such as passenger facility charges and 

departure taxes, so long as their amounts appear or are indicated clearly in the

advertisement so that the consumer can determine the full price to be paid.1 

Taxes and fees imposed on an ad valorem basis, however, must be included in 

the advertised price, lest consumers be confused about the total amount that 

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

fuel, insurance, and service charges, or other such costs, must be included in the 

advertised price. With respect to airfares and air tours advertised on the 

Internet, taxes and fees that are permitted to be excluded from the advertised 

price may be noted in a prominent link, placed adjacent to the stated price, that 

takes the viewer directly to the bottom of the screen, to a pop-up or to a place on 

a separate screen, where the nature and amount of such fees are displayed.2

Pursuant to 14 CFR 399.80(f), the Department has found that, as a matter of 

policy, certain types of conduct by ticket agents are unfair and deceptive 

practices or unfair methods of competition, including “ misrepresentations as to 

fares and charges for air transportation and services connected therewith.” 

In addition, the Transportation Security Administration (TSA) has promulgated 

a regulation, 49 CFR Part 1510, that imposes a security service fee in the amount 

of $2.50 per enplanement per passenger (with a $10 maximum per round trip) 

on most air transportation originating at airports in the United States. Pursuant 

to section 1510.7, all direct air carriers are required to identify the security 

service fee as the “ September 11th Security Fee” in advertisements and 

solicitations for air transportation that separately state the fee. Failure by a 

ticket agent to identify the September 11th Security Fee as required by section 

1510.7 is an unfair and deceptive trade practice in violation of 49 U.S.C. § 41712.

In offering air travel packages from the United States to China, which include 

air fares, guided tours, cruises, and related amenities. China Spree Travel has 

promoted its air fares and air travel packages in the United States by means of email solicitations and advertisements that are published in print and on China 

Spree Travel’s web site, www.Chinaspree.com, and other web sites. 

An investigation by the Department’s Office of Aviation Enforcement and 

Proceedings (“ Enforcement Office” ) disclosed that the air tour packages

 1

 See, e.g., Costa Cruise Lines N.V., Order 2009-9-3. 2

 See, e.g., Unique Vacations, Order 2010-11-7, China Focus Travel, Order 2010-9-6, JTB 

Corporation, Order 2008-12-24, Grand Circle Travel Corp, Order 2006-7-23, JetBlue 

Airways, Inc., Order 2004-2-4, and orders cited therein, and the notice entitled: 

Disclosure of Additional Fees, Charges and Restrictions on Air Fares in 

Advertisements, Including “ Free” Airfares, which is dated September 4, 2003, as well as 

guidance letters to the industry which can be found at: 

http:/ / airconsumer.ost.dot.gov/ rules/ guidance.htm. 
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promoted by China Spree Travel on its web site and that of others did not 

comply with Department requirements. Specifically, the listed prices failed to 

include air-related fuel and service surcharges, which must be included in the 

advertised price, and failed to include appropriate notice, adjacent to the 

advertised price, of the amount of government taxes and fees that were not 

included in the overall air plus land or cruise package price. In addition, the 

web site failed to disclose prominently and proximately to the air tour price

that the prices promoted required a cash purchase.3

 

For example, the Enforcement Office conducted a search of an e-mail 

advertisement, “ 2010 China’s Golden Triangle 10 Days, from only $888.” In the 

body of the text under “ Features,” there was a list entitled “ What’s Included,” 

which enumerated what the “ Tour Fare includes — Transpacific airfare, guided 

tours including admission, hotel accommodations, and meals.” At the end of 

the list, there appeared the statement that “ Air Taxes & Fees, Fuel Surcharges, 

China Visa” are “ Listed separately.” In the lower quarter of the page, under 

the sub-heading, “ Fees in addition to the listed Pricing,” was the following 

statement: 

U.S.A. & China air taxes and fees: SFO: $314, JFK: $322, China 

Land Only: $16.

There was no further detailed information about any taxes, nor about any fuel 

surcharge. 

Upon further inquiry, Enforcement Office staff ascertained that, in fact, the 

applicable taxes and fees amounted to no more than $110, and not, as stated, 

$314 or $322. China Spree Travel had included the airline-imposed fuel 

surcharge in the amount the firm designated as “ U.S. and China Taxes.” 

Enforcement Office staff verified that the promotions for numerous other China 

Spree Travel air tour packages contained virtually identical false statements 

and violations of the Department’s full-fare advertising requirements. 

By failing to include fuel surcharges imposed by carriers in the advertised price 

of an air ticket or air tour package when it first listed the price, China Spree 

Travel violated the Department’s regulations and enforcement case precedent. 

In addition to violating the requirements of sections 399.84 and 399.80(f), and 

related Department precedent and enforcement policies, such practices 

constitute an unfair and deceptive trade practice in violation of 49 U.S.C.

§ 41712. China Spree Travel engaged in a separate violation of 49 U.S.C. 

 3

 Not until the fourth scrolled page of a tour’s promotion, could a reader learn that to 

use any form of credit, a customer must pay an additional $200 per person. 
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§ 41712 by failing to identify the September 11th Security Fee as required by 

section 1510.7. 

With regard to fuel surcharges, we recognize the difficulties faced by some 

companies which may themselves be subject to “ fuel surcharges” by airlines in 

their contracts with carriers in order to secure seats in advance. However, once 

a firm quotes through its advertising a specific price for a flight, tour or tour 

component, the firm must charge that price to the consumer. When an air tour 

seller advertises a specific price for a flight, tour or tour component, it must 

have available a reasonable inventory at the advertised price for a reasonable 

time period. To preclude there being a deceptive practice issue for flyers or 

brochures, a firm can state in its flyers and brochures that the prices it is 

advertising are good “ as of” or “ until” a date certain, and advise the consumer 

that availability of the advertised fares may be limited and current fares may be 

higher with notice as to where the current prices can be obtained. Fares held 

out on the Internet or in newspapers, or orally, however, must be current and 

available. 

In mitigation and explanation, China Spree states that it takes its obligations 

very seriously regarding compliance with the Department’s full fare advertising 

rule and policies. Immediately following receipt of notice of the alleged 

violations, the firm notes that it sought counsel and fully cooperated with the 

Department. Based on its understanding of the alleged violations, China Spree 

recounts that it underwent an extensive renovation of all of its advertising, 

focusing on its web site. These initial changes were made voluntarily with the 

advice of counsel, and, China Spree further avows, the firm believed these 

changes adequately addressed the Department’s concerns and brought the firm 

into compliance with the Department’s rules and policies. When, however, the

Department raised the need for subsequent changes to the site concerning 

additional errors and omissions to the company’s attention, China Spree 

explains that it immediately underwent a second major renovation of its web 

site advertising, during which it made changes not only better to comply with 

the Department’s concerns, but also to simplify the advertising messages, 

reduce the links and thereby make the website more user friendly for the public. 

China Spree states that it also sought the assistance and review of the 

Department during the second revision, and now can declare with assurance 

that all of its advertising is in full compliance and will remain so.

China Spree indicates that throughout this process -- and before the Department 

contacted China Spree – the firm never received any complaints or questions 

from customers concerning its advertising and pricing. In addition, while the 

full price of its air tours may not have been evident everywhere in its 

advertising, China Spree states that its procedures made certain that the full 

price was known before any customer submitted his final payment for an air
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tour. To better ensure that any future advertising fully complies with the 

Department’s rules and policies, China Spree recounts that it has retained 

counsel to advise management and review communications with the public.

The Enforcement Office has carefully considered all of the information available 

to it, including that provided by China Spree Travel, but continues to believe 

that enforcement action is warranted. In this connection and in order to avoid 

litigation, the Enforcement Office and China Spree Travel have reached a 

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

allegations, China Spree Travel accepts the findings and conclusions stated 

herein in order to avoid potential litigation. Under this order, China Spree 

Travel is assessed $35,000 in compromise of potential penalties otherwise 

assessable under the provisions of 49 U.S.C. § 46301. Of the total penalty 

amount, $17,500 shall be due and payable as follows: $7,000 shall be due and 

payable within 15 days of the date of issuance of this order. Three payments of 

$3,500 each shall be due and payable on June 1, 2011, October 1, 2011, and 

January 1, 2012. Of the remaining portion of the civil penalty amount, $17,500

shall become due and payable if, within one year of the date of issuance of this 

order, China Spree Travel violates this order’s cease and desist provisions or 

fails to comply with this order’s payment provisions, in which case, China Spree

Travel may become subject to additional enforcement action for violation of the 

order. 

The Enforcement Office believes that the assessment of a civil penalty of 

$35,000 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 China Spree Travel and other sellers of air transportation. 

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 Tour Beyond, Inc., d/ b/ a China Spree Travel violated 14 

CFR 399.84 and 14 CFR 399.80(f), as described above, by causing to be 

published advertisements that failed to state the entire price to be paid 

by the passenger to the firm for certain air transportation;
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3. We find that by engaging in the conduct described in paragraph 2, 

above, Tour Beyond, Inc., d/ b/ a China Spree Travel engaged in an unfair 

and deceptive practice and an unfair method of competition in violation 

of 49 U.S.C. § 41712; 

4. We find that by failing to identify the September 11th Security Fee as 

required by section 1510.7, Tour Beyond, Inc., d/ b/ a China Spree Travel 

engaged in an unfair and deceptive trade practice in violation of 49 

U.S.C. § 41712;

5. We order Tour Beyond, Inc., d/ b/ a China Spree Travel and all other 

entities owned and controlled by, or under common ownership and 

control with Tour Beyond, Inc., d/ b/ a China Spree Travel, and their 

successors and assignees, to cease and desist from future violations of 

14 CFR 399.84, 14 CFR 399.80(f), and 49 U.S.C. § 41712;

6. Tour Beyond, Inc., d/ b/ a China Spree Travel is assessed $35,000 in 

compromise of civil penalties that might otherwise be assessed for the 

violations found in ordering paragraphs 2 3, and 4 of this order. Of the 

total penalty amount, $17,500 shall be due and payable as follows: 

$7,000 shall be due and payable within 15 days of the date of issuance of 

this order; three payments of $3,500 each shall be due and payable on 

June 1, 2011, October 1, 2011, and January 1, 2012. Of the remaining 

portion of the civil penalty amount, $17,500 shall become due and 

payable if, within one year of the date of issuance of this order, Tour 

Beyond, Inc., d/ b/ a China Spree Travel violates this order’s cease and 

desist provisions or fails to comply with this order’s payment provisions, 

in which case, Tour Beyond, Inc., d/ b/ a China Spree Travel may become 

subject to additional enforcement action for violation of the order; 

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

Tour Beyond, Inc., d/ b/ a China Spree Travel to the assessment of 

interest, penalty, and collection charges under the Debt Collection Act, 

and possible enforcement action for failure to comply with this order; 

8. Payments 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. The wire transfers shall be executed in 
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accordance with the instructions contained in the Attachment to this 

order; and

9. We order Tour Beyond, Inc., d/ b/ a China Spree Travel to submit to 

the Office of Aviation Enforcement and Proceedings copies of (a) all 

advertisements of air tours or air tour components it causes to be 

published in printed format or circulates as current during the last 30 

days of the one-year period following the issuance of this order; and (b) 

printouts of screen displays advertising air tour prices on its Internet site 

for the 15th day of each month during the one-year period following 

issuance of this order. This material shall be submitted within 15 days of 

the conclusion of the referenced one-year period. 

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: 

 

 

 

 

ROSALIND A. KNAPP

Deputy General Counsel

 

 

 

 

(SEAL) 

 

 

An electronic version of this document is available

at www.regulations.gov