The U.S. Department of Transportation is looking into airline frequent-flyer programs for potential deceptive or unfair practices and in recent weeks has been conducting meetings with airlines, Reuters reported Thursday.
The agency has been looking into transparency when booking award tickets, transferability of award miles, notice given before making changes to such programs and the devaluation of miles over time, according to the report.
Frequent flyer programs and their affiliated credit cards have been in the news in recent months, particularly since the introduction in June of the bipartisan Credit Card Competition Act of 2023. The bill aims to direct the Federal Reserve to ensure the largest credit card-issuing banks offer a choice of at least two networks over which an electronic credit transaction could be processed.
The airline industry trade group Airlines for America and others have argued that the proposed legislation would threaten airline reward programs. “The legislation would unnecessarily increase the cost associated with participating in these reward programs, harming carriers’ ability to reward their most enthusiastic customers’ loyalty and putting the viability of these programs at risk,” according to a response on A4A’s website.
The group also launched a “Protect Our Points” page that encourages individuals to let their congressional representatives know they against the bill.
DOT did not respond to a request for comment. A4A declined to comment beyond what is already available on its website.
