Order 2010-10-14

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

On the Twenty-Second day of October, 2010 

Educational Opportunities Tours, Inc.

Docket OST 2010-0005

Violations of 49 U.S.C. § 41712 and

14 CFR 399.80(f) and 399.84 Served October 22, 2010

CONSENT ORDER

This consent order concerns advertisements by Educational Opportunities Tours, Inc., 

(EOT) that violated 14 CFR 399.84, the Department’s rule on requiring disclosure of the 

full fare in advertising, 14 CFR 399.80(f), prohibiting misrepresentations by ticket 

agents, 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 $60,000 

and directs EOT to cease and desist from future similar violations.

Applicable Law

EOT is a travel agent that sells air transportation. Engaging in such conduct makes EOT 

a “ticket agent” pursuant to 49 U.S.C. § 401021 and therefore subjects it to the 

Department’s jurisdiction, including the prohibition on unfair and deceptive practices 

and unfair methods of competition in 49 U.S.C. § 41712 and the fare advertising 

requirements of 14 CFR Part 399.

Pursuant to 14 CFR 399.80(f), as a matter of policy, the Department regards certain 

types of conduct by ticket agents to be unfair and deceptive practices or unfair methods 

of competition, including “misrepresentations as to fares and charges for air 

transportation and services connected therewith.” Pursuant to 14 CFR 399.84, 

advertisements specifying airfares must state the full price to be paid by the consumer. 

 1 A ticket agent is “a person (except an air carrier, a foreign air carrier, or an employee of an air 

carrier or foreign air carrier) that as a principal or agent sells, offers for sale, negotiates for, or holds itself 

out as selling, providing, or arranging for air transportation.” 49 U.S.C. § 40102(a)(45).
2

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 carrierimposed fees, such as fuel surcharges, do not comply with sections 399.80(f), 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.

2 When such 

advertisements are caused to be published by a ticket agent, they also violate section 

399.80(f) and constitute a separate and distinct violation of section 41712.3

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 fares4 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.5

In addition, as detailed in 49 CFR Part 1510, there are specific disclosure requirements 

pertaining to the September 11th Security Fee of $2.50 per enplanement on passengers 

of domestic and foreign carriers in air transportation originating at airports in the United 

States. Pursuant to section 1510.7, air carriers and foreign air carriers are specifically 

required to identify this fee as the “September 11th Security Fee” in all advertisements 

and solicitations for air transportation where it is not included in the advertised base 

fare. This office considers the failure of a carrier or ticket agent to identify the 

 2 See, e.g., British Airways, PLC, Violations of 49 U.S.C. § 41712 and 14 CFR 399.84, Order 

2003-6-29 (June 20, 2003). 

3 See, e.g., Roni Herskovitz, Individually, and Ultimate Fares, Inc., Violations of 49 U.S.C. § 

41712 and 14 CFR part 257.5(d), 399.80(f) and 399.84, Order 2009-11-8 (Nov. 9, 2009). 

4 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, were the nature and amount of taxes and fees are 

prominently and immediately displayed. 

5 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.
3

September 11th Security Fee as required by the rule to constitute a separate and distinct 

unfair and deceptive practice in violation of 49 U.S.C. § 41712.6

Furthermore, under 49 U.S.C. § 41712, the Department can determine whether or not 

other actions by ticket agents constitute an unfair or deceptive practice or an unfair 

method of competition in the sale of air transportation. In this regard, the Department 

has long held that the disclosure of essential terms of transportation must be stated

prominently and proximately to advertised airfares, including the price of tour packages 

that include airfares. Failure to disclose essential terms in this manner constitutes a 

violation of 49 U.S.C. § 41712.7

Background

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

(Enforcement Office) disclosed that EOT’s website (http://www.eo.travelwithus.com/) 

and downloadable brochures advertised numerous international tour packages with 

prices that included roundtrip airfare, but that failed to detail the nature and amount of 

additional taxes and fees that may properly be excluded from the advertised price. For 

example, on its website EOT listed prices for particular air tour packages, but did not 

disclose the existence and amount of additional taxes and fees. Furthermore, on EOT’s 

downloadable brochures associated with its tour packages, EOT did include an asterisk 

next to the tour package price that led consumers to a fine print disclaimer at the bottom 

of the page, which stated “plus Tax, Tips, Etc.” However, EOT failed to state the nature 

and amount of those taxes and fees. Additionally, in the “Fine Print” section in many of 

its downloadable brochures, EOT noted that the price did not “include fuel surcharges 

which may be imposed by airlines” and noted that “EOT reserves the right to add a 

surcharge if the dollar declines by more than 5% against the Euro based on foreign 

exchange rates.” Accordingly, EOT’s advertisements violated the Department’s fullfare advertising rule, 14 CFR 399.84, and the prohibition against unfair and deceptive 

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

8

 EOT engaged in a 

separate violation of 49 U.S.C. § 41712 by failing to identify the September 11th 

Security Fee as required by section 1510.7.

Finally, many of EOT’s air tours advertised in its downloadable brochures were 

contingent on certain conditions being met, such as “a minimum of 45 passengers 

 6 See, e.g., A Better Fare, LLC, Violations of 49 U.S.C. § 41712 and 14 CFR 399.84, Order 2003-

1-12 (Jan. 16, 2003).

7 See, e.g., Martinair Holland, N.V., Violations of 49 U.S.C. § 41712 and 14 CFR 399.84, Order 

1999-6-14; America West Airlines, Inc., Violations of 49 U.S.C. § 41712 and 14 CFR 399, Order 2003-7-

39; Continental Airlines, Inc., Violations of 49 U.S.C. § 41712 and 14 CFR 399.84, Order 2009-8-3 (Aug. 

10, 2009).

8 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, 

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

required to operate a departure date,” which conditions were buried in fine print 

numerous pages from where the original trip cost was disclosed. Failure to prominently 

display critical purchase requirements for a tour package that includes airfare, such as 

the 45-passengers condition, is a separate and distinct unfair and deceptive practice and 

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

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. 

Mitigation

By way of mitigation and explanation, EOT states that it has operated for 36 years and 

believed its advertising practices were in compliance with the spirit and purpose of the 

Department’s laws and regulations. EOT states that it conscientiously strives to provide 

its customers with transparent and accurate pricing information and to assist its 

customers when selecting and purchasing a tour package through EOT. EOT states that 

it never knowingly or deliberately engaged in unfair or deceptive trade practices and has 

strived to comply with all applicable Federal and state laws, including the Department’s 

full-fare advertising rules. Accordingly, EOT states that it believed its website and 

brochures clearly and accurately conveyed its tour prices to its customers. Upon being 

contacted by the Department, EOT states that it immediately and fully cooperated with 

the Department in its investigation and educated itself with respect to the Department’s 

full-fare advertising rules. In addition, EOT states that upon receiving additional 

guidance from the Department, EOT immediately and voluntarily made costly 

modifications to its website and printed materials to bring its advertising practices into 

full compliance.

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 

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

this matter, including those provided by Educational Opportunities Tours, Inc., and 

believe that enforcement action is necessary. Educational Opportunities Tours, Inc., 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 
5

violations of 14 CFR 399.80(f) and 399.84 and of 49 U.S.C. § 41712, and to the 

assessment of $60,000 in compromise of potential civil penalties. We believe that this 

compromise assessment is appropriate and serves the public interest. It represents an 

adequate deterrent to future noncompliance with the Department’s advertising 

requirements by Educational Opportunities Tours, Inc., 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 Educational Opportunities Tours, Inc., has violated 14 CFR 

399.80(f) and 399.84 by causing to be published tour packages that include

airfares 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, 

Educational Opportunities Tours, Inc., 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, Educational Opportunities Tours, Inc., engaged in 

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

5. We find that by failing to prominently display critical purchase requirements

for a tour package that includes airfare, Educational Opportunities Tours, Inc., 

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

§ 41712; 

6. We order Educational Opportunities Tours, Inc., and all other entities owned 

and controlled by, or under common ownership and control with Educational 

Opportunities Tours, Inc., and its 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 Educational 

Opportunities Tours, Inc., and its successors and assignees to further 

enforcement action;

7. Educational Opportunities Tours, Inc., is assessed $60,000 in compromise of 

civil penalties that might otherwise be assessed for the violations described in 

ordering paragraphs 2, 3, 4 and 5 above. Of this total penalty amount, $30,000 

shall be due in three installments. The first payment of $10,000 shall be due 

and payable within 30 days of the date of issuance of this consent order. The 

second payment of $10,000 shall be due and payable within 60 days of the date 

of issuance of this consent order. The third payment of $10,000 shall be due 
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and payable within 90 days of the date of issuance of this consent order. The 

remaining $30,000 shall become due and payable immediately if Educational 

Opportunities Tours, Inc., violates this order's cease and desist or payment 

provisions during the 12 months following the service date of this order; and

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 accordance with the 

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

compromise penalty assessment as ordered will subject Educational 

Opportunities Tours, Inc., to an assessment of interest, penalty, and collection 

charges under the Debt Collection Act, and to possible enforcement action for 

failure to comply with this order.

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