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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    scarr (profile), Nov 2nd, 2010 @ 9:03pm

    What about the part where they haven't been paying customers more than $125 for lost luggage? It wouldn't take many lost suitcases to more than make up for that fine, and none of it goes to the people harmed by the losses.

     

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    Ryan Diederich, Nov 2nd, 2010 @ 9:16pm

    I am willing to bet...

    That Delta thought this one out very well.

    People would be much less likely to file a claim knowing that the end result would only be 125 dollars. Would you want to spend hours on the phone on hold and whatever for 125 dollars? Probably not.

     

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    Big Al, Nov 2nd, 2010 @ 9:55pm

    An oldie but a goodie

    British Airways -
    Breakfast in London
    Lunch in New York
    Baggage in Bahrain

     

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    darryl, Nov 2nd, 2010 @ 10:47pm

    Yes, Mike telling lies is badddd. mmmK..

    Gee your lucky Mike you are not Delta.

    I guess it would, and should worry you alot when people start calling out people or groups who tend to tell lies all the time..

     

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    Christopher (profile), Nov 3rd, 2010 @ 4:02am

    Luggage is going to be lost, just like UPS packages and other things. It's a fact of life until we get a better system into place where everything has a radio chip embedded in it so that the airlines can track EXACTLY where everything is at any time.

     

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      Titus, Nov 3rd, 2010 @ 4:38am

      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.

       

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    Berenerd (profile), Nov 3rd, 2010 @ 5:30am

    I still find it sick...

    That they can charge you $100/bag (last time I flew on Delta) and STILL be able to tell me with a straight face that there wasn't enough room on the flight so my bag is coming on the next one. The flight wasn't even 3/4ths full.

     

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    Chris Ball (profile), Nov 3rd, 2010 @ 9:33am

    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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