Airfare ad flap put to rest

Airlines had claimed free speech rights

WASHINGTON - In a case closely watched by the airline industry and free-speech advocates alike, the court declined Monday to hear Spirit's challenge to federal mandates on how prices are advertised. The court's decision effectively upholds Department of Transportation rules opposed by several airlines and civil libertarians who are concerned about government controls over commercial speech.

"We are disappointed and disagree with the decision," Misty Pinson, Spirit's director of corporate communications, said in an email Monday. "American consumers are going to pay more for air travel, and have less choice, as the government continues to pile costly new rules onto an already over-regulated and overtaxed industry."

At the same time, Pinson added that the company "will continue to be in compliance with the rules."

Allegiant Air spokeswoman Jessica Wheeler said that "we're certainly disappointed by the court's decision." Allegiant has passenger service out of Stockton Metropolitan Airport.

Spirit, joined by Southwest Airlines and Allegiant, opposed the federal rule that spells out how ticket prices are listed in ads. Among other things, the rule essentially prohibits airlines from overemphasizing the role that taxes play in a ticket's total cost. The airlines argued that the rule violates free speech rights.


"The regulation was a reasonable exercise of the agency's authority and imposes little or no burden on airlines' ability to communicate truthful information," Justice Department attorneys wrote, adding that airlines can still "provide information to customers about taxes."

Since 1984, the Department of Transportation has required that advertised airline ticket prices disclose the "entire price," including taxes. Airlines formerly could list the ticket prices and taxes separately, leaving it up to consumers to add up the total.

In 2010, the department elaborated that while the airlines could list taxes separately, they couldn't list the tax component "prominently" or "in the same or larger size as the total price." Officials said they feared that airlines would manipulate ads so the taxes overshadowed the total cost. Airlines countered that they wanted to draw attention to rising taxes and fees, which account for about 20 percent of a typical ticket's total cost.

In its decision Monday, issued without explanation, the Supreme Court effectively upheld a lower court's decision that sided with the Department of Transportation.

"This prevents airlines from confusing consumers about the total cost of their travel," the U.S. Court of Appeals for the District of Columbia Circuit said last year, in a 2-1 decision, adding that "the rule is aimed at providing accurate information, not restricting it."

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