Aviation Consumer Protection: Increased Transparency Could Help Build Confidence in DOT's Enforcement Approach

Consumer advocates, airlines, and other stakeholders have raised concerns about how the Department of Transportation (DOT) enforces aviation consumer protection requirements. DOT has the authority to enforce requirements protecting consumers against unfair and deceptive practices, discrimination on the basis of disability or other characteristics, and other harms. DOT's enforcement approach generally uses a range of methods to encourage compliance with consumer protection regulations, including conducting outreach and information-sharing, issuing guidance, and sending non-punitive warning letters for those violations that do not rise to the level that warrants a consent order. In 2020, GAO reported that DOT's enforcement approach focuses on improving compliance and reserves consent orders for egregious or systematic violations. Airlines and consumer advocates GAO interviewed at the time said that DOT's enforcement process lacked transparency, including into how investigations were conducted and resolved and about when and why DOT takes enforcement actions. In addition, GAO found that DOT publishes limited information related to the results of its enforcement activities. Providing clarity in rules and processes is a key principle for effective and efficient regulatory enforcement and federal internal controls related to transparency call for agency management to communicate information in a way that external parties can help the agency achieve its objectives. Stakeholders GAO spoke with about the clarity of DOT's approach generally expressed dissatisfaction with their lack of understanding of how the office carries out its enforcement efforts in three areas, including the process itself, how the agency accounts for risk to consumers, and the effectiveness of its activities. Officials at DOT's Office of Aviation Consumer Protection said they were taking actions to bring additional transparency into the investigation and enforcement process through the development of a handbook, which lacked a timeline for issuance, or other documentation. However, the officials did not provide GAO with evidence that the information to be provided will offer additional clarity into the process DOT uses to investigate potential consumer protection violations, to assess risk, and to pursue enforcement actions. Without providing additional insight into these areas, industry stakeholders, consumer advocates, and consumers themselves may continue to lack full confidence in DOT's enforcement process and the results of its enforcement efforts. Therefore, GAO recommended that DOT provide additional information on the process DOT's Office of Aviation Consumer Protection uses to investigate potential consumer protection violations, to assess risk, and to pursue enforcement actions and establish a timeframe for doing so. Such transparency could be provided through the handbook that DOT is currently drafting or through other public means such as providing additional information on its website. In February 2023, GAO confirmed that DOT had posted to its aviation consumer protection website a notice to explain its investigatory and enforcement policies and practices. The notice describes how DOT learns about potential problems through consumer complaints and industry monitoring, and describes DOT's investigation process, as well as the types of enforcement that DOT may take. Moreover, the notice provides additional explanation of how DOT's Office of Aviation Consumer Protection considers risk to consumers in its enforcement decision making, including recalibrating the penalties improves on airlines and ticket agents to deter future misconduct by seeking higher penalties that would not be viewed as simply a cost of doing business. By providing additional information on its website, DOT has taken steps to improve stakeholders' understanding of DOT's process and help build confidence in its approach.