Order 2012-10-12

 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

On the Eleventh day of October, 2012

Qantas Airways Limited

Docket OST 2012-0002

Served October 11, 2012

Violations of 14 CFR 399.85(b) 

and 49 U.S.C. § 41712 

CONSENT ORDER

This order concerns violations by Qantas Airways Limited (Qantas) of 14 CFR 399.85(b) 

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

directs Qantas to cease and desist from future similar violations and assesses the carrier 

$100,000 in civil penalties.

Applicable Law

Pursuant to 14 CFR 399.85(b), a covered carrier is required to clearly and prominently 

disclose on the first screen in which the carrier offers a fare quotation for a specific 

itinerary selected by a consumer that additional fees for baggage may apply and where 

consumers can view the applicable baggage fees. This rule ensures that consumers are 

not deceived and are given accurate and complete information on which to base their 

travel purchase decisions. Violations of section 399.85(b) constitute unfair and deceptive 

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

As a foreign air carrier, Qantas is subject to the prohibition on engaging in unfair and 

deceptive practices set forth in 49 U.S.C. § 41712 and to the baggage fee disclosure 

requirements of 14 CFR 399.85(b). For a period of time after January 24, 2012, Qantas 

violated section 399.85(b) by failing to disclose on the first screen in which it offers a 

fare quotation for a specific itinerary that additional airline fees for baggage may apply 

and where consumers could see those fees. By violating section 399.85(b), Qantas also 

engaged in an unfair and deceptive practice and unfair method of competition in violation 

of 49 U.S.C. § 41712. 

Mitigation

Qantas states that it includes the carriage of carry-on baggage and two pieces of checked 

baggage in its fares to and from the United States at no additional charge. Qantas further 

states that it has at all times provided baggage information on its website in a manner that 

is accurate and complete and readily accessible to customers, including on its “Review 

Your Flights” page. 

Qantas states that when it first became aware that the Enforcement Office did not 

consider its baggage fee disclosure to be compliant on February 2, 2012, it moved 

promptly to clarify the required changes and implement them through its outsourced 

service provider as quickly as possible, while keeping the Enforcement Office informed 

of its efforts. Working through its service provider, Qantas states that it placed the 

required new link on the “Select Your Flights” page on April 3, 2012, in addition to the 

disclosures already provided on the website.

Qantas has at all times shown a willingness to comply with the requirements specified by 

the Department and states that it has not received any consumer complaints regarding the 

placement of the baggage information prior to the implementation of the link on the 

“Select Your Flights” page on April 3, 2012.

Decision

The Enforcement Office has carefully considered the information provided by Qantas 

Airways Limited, but continues to believe enforcement action is warranted. The 

Enforcement Office and Qantas Airways Limited have reached a settlement of this matter 

in order to avoid litigation. Without admitting the violations described above, Qantas 

Airways Limited consents to the issuance of this order to cease and desist from future 

violations of 14 CFR 399.85(b), and 49 U.S.C. § 41712 and to the assessment of 

$100,000 in compromise of potential civil penalties otherwise due and payable pursuant 

to 49 U.S.C. § 46301.

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

violations described herein and serves the public interest. It establishes a strong deterrent 
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to future similar unlawful practices by Qantas Airways Limited and other sellers of air 

transportation.

This order is issued under the authority contained in 49 CFR Part 1.

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 Qantas Airways Limited violated 14 CFR 399.85(b) by failing to clearly 

and prominently disclose on the first screen in which the carrier offers a fare 

quotation for a specific itinerary selected by a consumer that additional airline fees 

for baggage may apply and where consumers can view the applicable fees; 

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

Qantas Airways Limited engaged in an unfair and deceptive practice and unfair 

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

4. We order Qantas Airways Limited and all other entities owned or controlled by, or 

under common ownership and control with Qantas Airways Limited, its successors, 

affiliates, and assignees, to cease and desist from further violations of 14 CFR 

399.85(b) and 49 U.S.C. § 41712;

5. We assess Qantas Airways Limited $100,000 in compromise of civil penalties that 

might otherwise by assessed for the violations described above. Of this total penalty 

amount, $50,000 shall be due and payable within thirty (30) days of the date of the 

issuance of this order. The remaining portion of the civil penalty amount, $50,000, 

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

of this order, Qantas Airways Limited violates this order’s cease and desist provisions 

or fails to comply with this order’s payment provisions, in which case Qantas 

Airways Limited may be subject to additional enforcement action for violation of this 

order; and

6. We order Qantas Airways Limited to pay the penalty through Pay.gov to the account 

of the U.S. Treasury. Payments shall be made in accordance with the instructions 

contained in the Attachment to this order. Failure to pay the penalty as ordered shall 

subject Qantas Airways Limited to the assessment of interest, penalty, and collection 

charges under the Debt Collection Act and to further enforcement action for failing to 

comply with this order.
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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:

SAMUEL PODBERESKY

Assistant General Counsel for

 Aviation Enforcement and Proceedings

An electronic version of this document is available at 

www.regulations.gov