The U.S. Department of Transportation is fining online travel company Travelzoo Inc. $50,000 for failing to properly disclose to consumers that they were selling flights operated by airlines using code-sharing arrangements.
Under code-sharing arrangements, an airline will sell tickets on flights that use its own designator code but are actually operated by a separate airline. Federal rules require airlines and ticket agents to disclose to consumers, before they book a flight, if the flight is operated under a code-sharing arrangement.
"Passengers deserve to know which airline will be operating their flight before they purchase their tickets," U.S. Transportation Secretary Ray LaHood said in a statement.
The federal department also ordered Travelzoo to cease and desist from future violations
A representative for Travelzoo was not immediately available to comment.
Shares of Travelzoo gained 24 cents to $17.52 in late afternoon trading. The stock has traded between $16.56 and $31.66 in the past 52 weeks.