Order 2010-11-7 

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UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

Issued by the Department of Transportation 

On the Eighth Day of November, 2010 

Unique Vacations, Inc. 

Violations of 49 U.S.C. § 41712 and 

14 CFR 399.84 

Docket DOT-OST 2010-0005 

Served November 8,2010 

CONSENT ORDER 

This consent order concerns advertisements by Unique Vacations, Inc., ("Unique 

Vacations") that were published in print and electronic media for Sandals 

Resorts that violate the Departnient's price advertising requirenients specified 

in section 399.84 of the Department's regulations (14 CFR 399.84) and constitute 

unfair and deceptive trade practices and unfair methods of conipetition in 

violation of 49 U.S.C. § 41712. This order directs Unique Vacations to cease and 

desist from future violations and assesses the company compromise civil 

penalties of $200,000. 

Unique Vacations, as a ticket agent selling air tour packages, 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, as a matter of enforcement policy, the Department has permitted air 

carriers and ticket agents to state separately from the advertised price taxes and 

fees imposed by a goverimient on a per-passenger basis, such as passenger 

facility charges, 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.' 

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

the advertised price. 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 air fares 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 proximately to the stated price, that takes the 

viewer to the bottom of the screen, or to a place on a separate screen, where the 

nature and amount of such fees are displayed.^ 

Unique Vacations specializes in offering travel packages, which include air fare, 

hotel, guided tours, and related amenities, particularly to Sandals and Beaches 

resorts in the Caribbean, including Jamaica, St. Lucia, Antigua and The 

Bahamas.^ Unique Vacations has promoted its air travel packages through 

printed advertisements in newspapers such as The New York Times, trade 

magazines, television, flyers and other mailers, outdoor advertising, and by 

means of advertisements that are published on various online sites, including its 

web site, www.Sandals.com. 

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

Proceeding ("Enforcement Office") disclosed that the air fares and air tour 

packages promoted by Unique Vacations to Sandals Resorts and its affiliates in 

advertisements in various print and electronic media did not comply with 

Department requirements. Specifically, Unique Vacations deceptively 

advertised "free" air fares in connection with air plus land packages when, in 

fact, consumers would in some cases be required to pay an amount ostensibly 

representing "airline costs," which could include "fuel surcharges." Moreover, 

Unique Vacations advertisements for Sandals Resorts failed to provide 

adequate notice that certain taxes and fees would be assessed on these so-called 

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

^ See, e.g., China Focus, Inc., Order 2010-9-6; Prestige Cruise Holdings, Inc., Order 

2010-4-1; JTB Corporation, Order 2008-12-24; Trafalgar Tours West, Order 2007-8-24; 

Grand Circle Travel Corp, Order 2006-7-23; and orders cited therein, and the notice 

entitled: Disclosure of Addihonal 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.htin. 

' Unique Vacations, Inc., states that it is "the worldwide representative of" and 

"provides advertising and marketing services" to Sandals Resorts, "a group of aUinclusive hotels in the Caribbean." Unique Vacations further states that "it does not 

operate, manage or supervise any of the hotels." Sandals Resorts International operates 

Sandals Resorts and its affiliates, which include Beaches Resorts (www .beaches .com), 

The Royal Plantations Collection, and Grand Pineapple Beach Resorts. 
"free" air fares, and must be paid by the passenger, or disclose the amount of 

these "airline costs" or a range. 

For example, in connection with its advertisement in The New York Times of an 

air travel package to Sandals Resorts, entitled "Fly Free. Love is in the Air," 

Unique Vacations included the follov^ng fine print notice at the bottom of the 

page where the "free" portion of the air fare is promoted: 

*Fly Free offer is . . . fulfilled as credit toward land portion of 

booking based on double occupancy, minimum 3 night stay, $350 

airfare per person for travel to Jamaica or Bahamas, $450 per person 

for travel to St. Lucia, $550 per person for travel to Antigua. 

Maximum two-person limit for offer. In some cases, offer may not 

cover all airline costs, taxes and fuel surcharges. Cancellation 

penalties, deposits and other fees for airfare may apply. 

Similar advertisements were published thousands of times on the Internet, in 

numerous major newspapers and were broadcast via television throughout the 

United States. In addition, on the Sandals Resorts web site. Unique Vacations 

published a similar promotion with the offer to "Fly Free to the Sandals Royal 

Caribbean Resort and Private Island," in which similar violations were evident. 

By advertising air fares as "free" when consumers received only a limited dollar 

credit toward an air fare and would be required to pay additional airline costs 

and fuel surcharges imposed by carriers, or other surcharges collected by Unique 

Vacations, and by failing to provide consumers adequate notice of taxes and fees 

(that are permitted to be stated separately under the Department's policies, but 

that had to be paid in order to obtain a "free" air fare). Unique Vacations violated 

section 399.84 and related Department precedent, and engaged in an unfair and 

deceptive trade practice in violation of 49 U.S.C. § 41712. 

In explanation and mitigation, Unique Vacations states that it strives to conduct 

its business in full conformity with all applicable Federal and state laws and 

regulations and any violation set forth herein was unintentional. The object of 

the "Love is In the Air" promotion, the firm explains, was to provide travelers a 

credit toward the full cost of a travel package. Its choice of the phrase "free" air 

fares in connection with those air plus land packages and the apparent 

statement that consxmiers might be required to pay an amount ostensibly 

representing "airline costs," which could include "fuel surcharges" were 

inartful, the firm says. Unique Vacations states further that its research 

indicates that no customer of Sandals Resorts was actually charged any 

additional airline surcharges, costs or fees other than government-imposed taxes 

and fees. Unique Vacations also discloses that the firm did not receive any 

customer complaints regarding the challenged advertising. The firm states that 
it believes only that it failed to identify properly the September 11* Security Fee 

or to provide adequate notice to consumers of the nature and amount, or a 

range, of the applicable government-imposed taxes and fees that they would be 

required to pay. 

Unique Vacations declares that it has begun working in depth wdth the Nassau 

Paradise Island Promotion Board and others involved in their joint promotions 

of resorts in Nassau to ensure compliance with all of the applicable Department 

disclosure requirements. 

Finally, Unique Vacations states that in fact, it has always strived to conduct its 

marketing business in compliance with all applicable Department rules and 

regulations. One of Unique Vacation's stated commitments, the firm reports, is 

to "avoid consumer confusion," and it believes that the numerous travel awards 

that it has received, together with return guest statistics that exceed industry 

standards, are reflective of that fact. 

The Enforcement Office has carefully considered all of the information available 

to it, including that provided by Unique Vacations, but continues to believe that 

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

litigation, the Enforcement Office and Unique Vacations have reached a 

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

allegations. Unique Vacations accepts the findings and conclusions stated herein 

in order to avoid potential litigation. Under this order. Unique Vacations agrees 

to cease and desist from future violations of 49 U.S.C. §41712 and 14 CFR 

399.84, and to the assessment of $200,000 in compromise of potential penalties 

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

amount, $100,000 shall be due and payable as follows: $40,000 shall be due and 

payable within 15 days of the date of issuance of this order; three additional 

payments of $20,000 each shall be due and payable on March 15, 2011, on 

September 15, 2011, and on March 15, 2012, respectively. Of the remaining 

portion of the civil penalty amount, $100,000 shall become due and payable if, 

within eighteen months of the date of issuance of this order. Unique Vacations 

violates this order's cease and desist provisions or fails to comply with this 

order's payment provisions, in which case. Unique Vacations may become 

subject to additional enforcement action for violation of the order. The 

Enforcement Office believes that the assessment of a civil penalty of $200,000 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 Unique 

Vacations 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 Unique Vacations, Inc., violated 14 CFR 399.84, 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; 

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

above. Unique Vacations, Inc., engaged in an unfair and deceptive 

practice and an unfair method of competition in violation of 49 U.S.C. 

§ 41712; 

4. We direct Unique Vacations, Inc., and all other entities owmed and 

controlled by, or under common ownership and control with Unique 

Vacations, Inc., and their successors and assignees, to cease and desist 

hrom future violations of 14 CFR 399.84 and 49 U.S.C. § 41712; 

5. We assess Unique Vacations, Inc., $200,000 in compromise of civil 

penalties that might otherwise be assessed for the violations found in 

paragraphs 2 and 3 of this order; of this penalty amotmt, $100,000 shall be 

due and payable as follows: $40,000 shall be due and payable within 15 

days of the date of issuance of this order; three additional payments of 

$20,000 each shall be due and payable on March 15, 2011, on September 

15, 2011, and on March 15, 2012, respectively. The remaining portion of 

the civil penalty amount, $100,000 shall become due and payable if, 

within eighteen months of the date of issuance of this order. Unique 

Vacations, Inc., violates this order's cease and desist provisions or fails to 

comply with this order's payment provisions, in which case. Unique 

Vacations, Inc., may become subject to additional enforcement action for 

violation of the order. 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; 

6. Failure to pay the compromise assessment as ordered will subject 

Unique Vacations, Inc., 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; and 
7. We order Unique Vacations, Inc., 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, 

broadcasts or otherwise circulates as current during the last 20 days of 

the eighteen month period following the issuance of this order; and (b) 

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

for the 15* day of each month during the eighteen month period 

following issuance of this order. This material shall be submitted within 

15 days of the conclusion of the referenced eighteen month 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 wwrw.regulations.gov