NEWS: Major US Airlines Under Investigation for “Deceptive Practices” of Frequent Flyer Programs

How often do you fly in and out of airports?

If it’s relatively often, then chances are you’re part of at least one — if not more — frequent flyer programs. These programs allow passengers to earn points for travel that can be redeemed for flights and more. But, the United States Department of Transportation may be seeking to change that.

The US Department of Transportation (USDOT) is taking a look at frequent flyer programs of major airline carriers for “potential deceptive or unfair practices,” according to Reuters.

The department has recently met with passenger airlines to discuss loyalty programs, including “transparency practices when booking award tickets, transferability of miles and notice given before making changes.”

USDOT is also looking at “the devaluation of frequent flyer miles over time that makes it harder to book award tickets.”

“We plan to carefully review complaints regarding loyalty programs and exercise our authority to investigate airlines for unfair and deceptive practices that hurt travelers as warranted,” said a department spokesperson. “DOT officials are actively meeting with U.S. airlines and gathering more information on this issue.”

Delta Air Lines and United Airlines declined to comment, but both offer frequent flyer programs — one of the most popular loyalty programs. Delta reported 100 million frequent flyer members in 2020 but added a record 8.5 million more members in 2022.

The meetings were called after some Congress members raised concerns about the programs. Senate Judiciary Chair Dick Durbin and Republican Senator Roger Marshal asked the Transportation Department and Consumer Financial Protection Bureau about “troubling reports” of deceptive practices in airlines’ frequent flyer programs.

The two claimed that “airlines are changing point systems in ways that are unfair to consumers, including by devaluing points, meaning it takes more points than initially marketed to achieve the promised rewards.”

Airlines went on a strong push to lobby Congress earlier this year to reject legislation co-sponsored by Durbin and Marshal they say threatens their “ability to offer rewards credit cards that give consumers frequent flyer miles for making transactions.”