Delta Fined For Lying To Passengers About How Much They Could Get Reimbursed For Lost Luggage

from the not-following-the-law dept

Consumerist alerts us to the news that the Department of Transportation has fined Delta $100,000 for telling passengers that its liability on lost luggage was capped at very low rates — well below what the DOT specifically requires. The law says that airlines cannot limit liability to anything lower than $3,300 per passenger. So what did Delta do? It gave passengers notices saying that liability was limited to $125. Turns out, that’s a no-no. Of course, I’d rather that the airline spend the money on not losing luggage, but perhaps that’s just wishful thinking…

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Companies: delta

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Comments on “Delta Fined For Lying To Passengers About How Much They Could Get Reimbursed For Lost Luggage”

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12 Comments
Titus says:

Re: Re:

You mean like the bar code system they already have in place? It only works when they use scanners on them. Using RFID is nice, but someone still has to use it. Last time I flew Delta (Detroit is a hub), we flew in at shift change. Half the plane’s luggage was left sitting on the tarmac. Seriously. The guy loaded up the luggage train, and was told it was quitting time, and no one was sent to drive it to the loading bay. After an hour of being demeaned and yelled at (seriously being yelled at for their mistake!) by a customer service manager, they found someone to unload it. I also was told that the max value of my luggage was $125.

Chris Ball (profile) says:

Incentives

Of course, I’d rather that the airline spend the money on not losing luggage, but perhaps that’s just wishful thinking…

It’s not as if the money they are paying out to unfortunate passengers is coming out of their “not losing luggage” budget. Making them (more) liable for lost luggage actually gives them a financial incentive to not lose luggage–or, rather, it reduces the incentive to be careless about whether or not they lose luggage–encouraging them to spend money to solve the problem. That said, I don’t think this is likely to have an appreciable effect on the problem, because they’re probably spending enough money on this problem already that not spending enough money isn’t the issue.

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