Expedia Fined for Omitting Fuel Surcharge in Listings

Internet travel seller Expedia was fined $40,000 earlier this month by the U.S. Department of Transportation for failing to include fuel surcharges, generally about $20 on a one-way ticket, in some air fare listings.

The consent order was one of seven DOT enforcement actions this year against airlines, Internet companies and other travel sellers for failing to include the surcharge, which major airlines began adding nearly two years ago. Fines in the cases total more than $240,000, although most companies, including Expedia, need pay only half the fine if they comply with the order.

DOT rules require that the fuel surcharge be included in the base price (the fare before taxes and fees) in advertisements.

In Expedia’s case, the DOT focused on the “Fare Calendar” option on its Web site, which lets consumers search for the lowest fares between two cities. It said the search called up fares without the surcharge but with a footnote stating that a fuel surcharge might apply; the full fare, including the surcharge, was later displayed before purchase.

In its defense, the order says, Expedia said that it was merely displaying fares from Airline Tariff Publishing Co., or ATPCO, an airline-owned clearinghouse, which it said doesn’t include the surcharge, and that other travel sellers were doing the same. It also cited technical difficulties that prevented it from correcting the problem more promptly. (When checked Dec. 24, www.expedia.com was posting a note that said “estimated fuel surcharges” were included in quoted fares.)

In a footnote to its order, the DOT says it is “investigating several other Internet travel agencies” regarding fare displays.

“We’re hoping that the word is getting out and that companies are complying,” said DOT spokesman Bill Mosley. The other consent orders on fuel surcharges involved Grand Bahamas Vacations, Vacation Express Holdings Inc., Northwest Airlines, Lowestfare.com, Vanguard Airlines and US Airways.