OTA fined for false advertisng
The Department of Transportation has imposed a fine on an online travel agent for improperly rounding down airfares.
According to the DOT, Vayama.com rounded down advertised airfares and did not itemize its booking fees.
These offenses come under the DOT’s unfair and deceptive trade practices rule.
The company accepted a penalty of $80,000 with half of the fine waived if it does not repeat the offenses within one year.
The DOT says it is deceptive for an agent to advertise fares rounded down to the nearest dollar, and charged Vayama with doing this on some fares in 2012 and 2013.
Also, the DOT requires all fees to be highlighted individually, including mandatory booking fees when charged by an agent, a rule Vayama did not comply with in 2013.
The company took measures to correct both violations once informed by the DOT.
Based in Mountain View, CA, Vayama is part of Dutch travel services company BCD Holdings.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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