Order 2012-1-5

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

On the Ninth day of January, 2012

Imagine Tours & Travel, L.L.C.

Docket OST 2012-0002

Violations of 49 U.S.C. § 41712 and

399.84 Served January 9, 2012

CONSENT ORDER

This consent order concerns advertisements of air tours by Imagine Tours & Travel, 

L.L.C., (ITT) that violated 14 CFR 399.84, the Department’s rule requiring disclosure of 

the full fare in advertising, and 49 U.S.C. § 41712, which prohibits unfair and deceptive 

practices by air carriers and ticket agents. This order assesses a compromise civil 

penalty of $30,000 and directs ITT to cease and desist from future similar violations.

Applicable Law

As a ticket agent, ITT is subject to the advertising requirements of Part 399 of the 

Department’s rules. Pursuant to 14 CFR 399.84, airfare advertisements 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 the base 

fare 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 advertisement 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, 2) include only general statements regarding the existence of such taxes and fees, 

or 3) separately state carrier- or agent-imposed fees, such as fuel or service surcharges, 

do 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. § 41712.1

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

separately from the advertised fare may be disclosed through a prominent link placed 

adjacent to the stated fares that notes that taxes and fees are extra and directly takes the 

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

taxes and fees are prominently and immediately displayed.2

Background

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

(Enforcement Office) disclosed that ITT’s website (http://www.ittworld.com/) and print 

brochures advertised numerous international air tour packages with prices that included

roundtrip airfare, but that failed to detail the nature and amount of additional taxes and 

fees were excluded from the advertised price. Furthermore, in ITT’s print brochures

associated with its tour packages, ITT included a “Fine Print” disclaimer at the end of 

the brochure that denoted items not included in the price, such as taxes and fees, in a 

separate box. However, ITT failed to state the nature and amount of those taxes and 

fees. Additionally, in the fine print section in many of its brochures, ITT noted that the 

price did not “include fuel surcharges which may be imposed by airlines” and noted that 

it “reserves the right to add a surcharge if the dollar declines by more than 5% against 

the Euro based on foreign exchange rates in effect.” Accordingly, ITT’s advertisements 

violated the Department’s full-fare advertising rule, 14 CFR 399.84, and the prohibition 

against unfair and deceptive practices and unfair methods of competition, 49 U.S.C. 

§ 41712.3 

 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, after the initiation of the Department’s inquiry regarding ITT, 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 or 26, 2012, depending on the outcome of a pending rulemaking, airlines and ticket 

agents must include all government taxes and fees in every advertised fare. The Department’s longstanding prohibition on omitting carrier- or agent-imposed charges, such as fuel surcharges or 

convenience fees, from advertised fares remains in effect.

2 For example, 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 takes 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 are 

prominently and immediately displayed. See also 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.

3 See, e.g., Gate 1, Ltd., Violations of 49 U.S.C. § 41712 and 14 CFR 399.84, Order 2009-7-5 (Jul. 

7, 2009); Ritz Tours, Inc., Violations of 49 U.S.C. § 41712 and 14 CFR 399.84, Order 2008-2-22 (Feb. 15, 
3

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

who 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.4 

Mitigation

In mitigation, ITT states that compliance with the Department’s rules is of paramount 

importance to ITT and ITT has no enforcement history with the Department. ITT states 

that it has no record of receiving any customer complaints with regard to any of the 

issues raised in this inquiry. Additionally, it was never ITT’s intention to deliberately 

disregard any of the Department’s regulations or to mislead customers in any way. 

Furthermore, immediately upon learning of this inquiry, ITT states that it took 

immediate steps to modify its website and promotional materials to address the areas of 

concern. Further, ITT points out that it has fully cooperated with the Department with 

regard to this inquiry. ITT maintains that, since these modifications, the ITT Website 

and promotional materials contain the proper disclosures for all additional charges. ITT 

is willing to work with the Department in any way to ensure future compliance. 

Further, ITT asserts that there are certain difficulties and exigencies in the airline 

ticketing industry that make it virtually impossible for ITT to be able to predict the final 

taxes, fees and fuel surcharges that will be imposed by the airlines. In spite of these 

difficulties, ITT states that it does not implement, and has not implanted, any postpurchase price increases. Advertised prices are based on current taxes, fees and fuel 

surcharges. In the event that a fuel charge increase is imposed by an airline after the time 

of purchase (the date on which the full amount has been paid by the customer), ITT 

absorbs that additional cost and the amount is not passed on to the customer.

Decision

The Enforcement Office views seriously the obligation of all ticket agents to comply 

with the Department’s regulations and to observe the statutory prohibition against 

 2008); Trafalgar Tours West, Inc., d/b/a Trafalgar Tours, Violations of 49 U.S.C. § 41712 and 14 CFR 

Part 399, Order 2007-8-24 (Aug. 24, 2007).

4 See, e.g., Tour Beyond, Inc., d/b/a China Spree Travel, Violations of 49 U.S.C. § 41712 and 14 

CFR 399.84 and 399.80(f), Order 2010-2-6 (Feb. 9, 2011).
4

engaging in unfair and deceptive practices. We have carefully considered the facts of 

this matter, including those provided by Imagine Tours & Travel, L.L.C., and believe 

that enforcement action is necessary. Imagine Tours & Travel, L.L.C., for its part, in 

order to avoid litigation and without admitting or denying the alleged violations, 

consents to the issuance of this order to cease and desist from future violations of 14 

CFR 399.84 and of 49 U.S.C. § 41712, and to the assessment of $30,000 in compromise 

of potential civil penalties. We believe that this compromise assessment is appropriate 

and serves the public interest. It represents a strong deterrent to future noncompliance 

with the Department’s advertising requirements by Imagine Tours & Travel, L.L.C., as 

well as by other ticket agents.

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 Imagine Tours & Travel, L.L.C., has violated 14 CFR 399.84 

by causing to be published air inclusive tour packages that failed to state the 

entire price to be paid for the advertised air transportation, as described above;

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

Imagine Tours & Travel, L.L.C., engaged in an unfair and deceptive practice 

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

4. We order Imagine Tours & Travel, L.L.C., and all other entities owned or

controlled by, or under common ownership and control with Imagine Tours & 

Travel, L.L.C., and their successors and assignees, to cease and desist from 

future violations of 14 CFR 399.84 and 49 U.S.C. § 41712. Failure to comply 

with this cease and desist provision shall subject Imagine Tours & Travel, 

L.L.C., and its successors and assignees to further enforcement action;

5. Imagine Tours & Travel, L.L.C., is assessed $30,000 in compromise of civil 

penalties that might otherwise be assessed for the violations described above. Of 

this total penalty amount, $15,000 shall be due and payable within 30 days of 

the date of the issuance of this consent order. The remaining $15,000 shall 

become due and payable if Imagine Tours & Travel, L.L.C. violates this order’s 

cease and desist or payment provisions during the 12 months following the 

service date of this order in which case the entire unpaid portion of the civil 

penalty shall become due and payable immediately and Imagine Tours & 

Travel, L.L.C. may be subject to further enforcement action for failure to 

comply with this order;

6. Payments shall be made by wire transfer through the Federal Reserve 

Communications System, commonly known as "Fed Wire," to the account of 
5

the U.S. Treasury. The wire transfer shall be executed in accordance with the 

instructions contained in the Attachment to this order. Failure to pay the 

compromise penalty assessment as ordered will subject Imagine Tours &

Travel, L.L.C., to an assessment of interest, penalty, and collection charges 

under the Debt Collection Act.

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

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

initiative.

BY:

ROSALIND A. KNAPP

Deputy General Counsel

(SEAL)

An electronic version of this document is available

at www.regulations.gov