Airlines’ highly lucrative – and sometimes mysterious – frequent flyer and credit card rewards programs are now subject to an unpre

Federal probe targets airline frequent flyer programs

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2024-10-17 19:00:16

Airlines’ highly lucrative – and sometimes mysterious – frequent flyer and credit card rewards programs are now subject to an unprecedented federal consumer protection probe.

The Department of Transportation told executives of the country’s four major airlines on Thursday to divulge details and data surrounding the policies and practices of how passengers can accrue and spend miles.

“Our goal with this inquiry is to ensure that customer rewards are protected from any practices that would diminish their value, benefit, or availability,” says the letter to the CEOs of American Airlines, Delta Air Lines, Southwest Airlines and United Airlines, which now have 90 days to respond to the Department of Transportation.

The DOT’s probe is focused on how consumers could be affected by the devaluation of earned rewards, extra fees, hidden or dynamic pricing and reduced competition and choice.