Delta fined $100,000 for misleading baggage brochure

Federal law says an airline can’t limit its liability for lost, damaged or delayed baggage to less than $3,300 per passenger. But if you’re flying on Delta Air Lines, you might have thought otherwise.

Even after the Transportation Department issued an industry notice (.DOC) last October, reminding airlines that they couldn’t cap their compensation, Delta allegedly distributed a pamphlet that said it “will not authorize any expense reimbursement” when a passenger’s delayed baggage is expected to reach the passenger within 24 hours.

The brochure also said the carrier’s liability is capped at $25 per day “for necessities after the first 24 hours up to a maximum of USD 125 per ticketed customer” while a passenger is away from his or her permanent residence.

The government has fined Delta $100,000 for distributing the brochure months after its advisory. Here’s the consent order (.PDF).

The Transportation Department claims passengers who read the brochure may have been misled about their rights under the law.

The Enforcement Office believes that passengers who read the pamphlet may have been dissuaded from seeking reimbursement to which they were entitled. Moreover, in a number of instances in which passengers whose bags were delayed sought reimbursement, Delta applied the exclusions and limitations set forth in the pamphlet.

In its consent order, the DOT reaffirmed that Delta “may not limit its liability for provable direct or consequential damages relating to lost, damaged, or delayed baggage to less than $3,300 per passenger.”

What does Delta have to say for itself? The airline claims some stations failed to destroy old brochures.

Delta asserts that it had updated its baggage policy disclosures in its relevant informational pamphlets, distributed them to the field, and instructed all stations to substitute the new pamphlets by the January deadline established by the Department’s guidance on this subject.

Delta further instructed its stations to destroy the outdated pamphlets. Delta states that any distribution of outdated pamphlets or application of a flat per diem cap in the processing of a baggage claim violated Delta policy, and affected only a tiny fraction of the millions of passengers served by Delta.

That’s an excuse you don’t see every day.

Moral of the story? If an airline tells you what your rights are under federal law, do yourself a favor and look up the law for yourself.

You might be surprised.

  • Bill

    It would solve a lot of problems if Delta/Northwest just had their permit to operate revoked. I won’t fly them. No one else should either.

  • Raven

    @Bill:
    I agree. After watching an incompetent Delta agent spend three hours rebooking passengers at PVD once, I refuse to go near them. And the reason for the delay and thus the rebookings? Delta decided to change equipment at the last minute, released their current crew wasn’t cleared on the equipment and had to fly in another crew from Atlanta.
    I used to have a photo of the non-moving line and the ONE agent. Can’t find it on my phone, though. Oh, there were other agents around–a few walked by, sipping their coffee as people stood in line for THREE HOURS.

    Way to go Delta!

  • http://www.travelnz.net Travel NZ

    Does the claim liability include things like being held up by extreme weather?

    Ewen

  • David Z

    @Bill

    Unfortunately, not going to happen. At least, not with just this only.

  • Ed

    So…who benefits from the $100,000 fine? Who’s pocket does it line?

  • Eric

    I like the part that says: “will not authorize any expense reimbursement” when a passenger’s delayed baggage is expected to reach the passenger within 24 hours.

    If your luggage is lost, how does Delta know it will arrive within 24 hours? That must be one high-powered Ouija board they’ve got there.

  • Kevin M

    Ed: Most federal fines go into the operating account of the agency which levies them, presumably so that they can offset the expense of having investigators, inspectors, etc. to enforce the regulations. I would imagine that’s the case here.

  • Chad

    My most recent Delta flight will be my last. My luggage was delayed and I had to cancel my evening plans since I had none of my personal articles with me. I tried quite thoroughly to receive a reimbursement for my $25 checked bag fee, however Delta’s customer service centers are not setup for this sort of compensation. Simple-to-understand good business practice: If you charge a ridiculous fee for a service which you end up not delivering on, reimburse the fee.

  • Paula

    This just happened to me this week. I was lucky, they gave me a travel voucher to use for double the price I paid to check the baggage and they expedited shipping so that I had the bag within 24 hours. They took the bag off to do a “random” inspection. Why couldn’t they do the inspection and throw it back on the plane?