travelers insurance complaints news

18.05.12

The pre-checked box, a clever technique that travel companies use to extract a few dollars more from customers booking their trips online, may be checking out.

Last month, the Minnesota Department of Commerce alleged that National Union Fire Insurance and Travel Guard Group had violated state law by automatically enrolling consumers in travel insurance without their express consent when they booked on Travelocity.com .

Unless they specifically opted out of the insurance, customers were buying policies that cost $25 to $45 per traveler, according to the state. The companies have agreed to issue nearly $2.5 million in refunds and pay a $250,000 civil penalty.

And in January, the Transportation Department's new full-fare advertising regulations for airfares went into effect. They include a rule that prohibits so-called opt-out provisions in ads, further closing a loophole that had cost consumers millions and generated thousands of complaints.

No surprise, then, that online agencies are slowly backing away from the practice.

Source: The Seattle Times