Blumenthal, Advocates Condemn Airline Discriminatory Pricing; Protections Needed to Safeguard Passenger Personal Information, Prevent Abuse

(Hartford, CT) Today, U.S. Senator Richard Blumenthal (D-Conn.) condemned airlines’ approved plans to institute discriminatory pricing practices that would charge passengers different fares depending on income, marital status, travel frequency and reason for travel.

Blumenthal called on the U.S. Department of Transportation to clarify and explain how it will prevent abuse and discrimination under International Air Transport Authority (IATA) Resolution 787, which may allow passengers to be charged higher prices based on a combination of seat availability and a consumer’s personal characteristics including where a person lives. The practice relies on the large-scale collection, use and storage of sensitive personal information, raising concerns about privacy and possible discrimination. While passengers have the choice to shop anonymously, the Resolution gives consumers no assurance that opting out will not lead to higher prices or other discriminatory practices.

Through “personalized pricing” airlines, using consumer zip code information, may offer special fares to consumers who live in more affluent zip codes to entice them to travel more frequently while failing to provide those same discounts in lower income areas.  On the other hand, business travelers who regularly fly the same routes could face higher prices.   

“I will fight to prevent pricing discrimination based on sensitive personal information, like where a person lives and whether a person is married. Collecting and exploiting sensitive personal information—personalized pricing—opens a Pandora’s Box that could lead to serious abuse and morally bankrupt policies. Airlines should not charge one consumer more or less based on income, frequency of travel or the reason for the flight. If airlines do not reject and renounce this insidious practice, investigations and legislation may be needed,” Blumenthal said.