The U.S. Supreme Court turned away an airline-industry challenge to federal requirements that carriers display the total cost of a ticket more prominently than the pretax price on web pages and in advertisements.
The justices today left intact Transportation Department rules that were put in place last year to reduce consumer confusion about ticket charges. Airlines said the rules violate speech rights by prevent companies from emphasizing the impact of fees and taxes.
Spirit Airlines Inc. and other airlines are arguing that the Transportation Department is trying to block companies “from drawing clear and conspicuous attention to truthful information about the significant tax burden on airline tickets, at a time when the administration is pushing to raise those taxes even higher.” Photographer: Sam Hodgson/Bloomberg
The department is trying to block companies “from drawing clear and conspicuous attention to truthful information about the significant tax burden on airline tickets, at a time when the administration is pushing to raise those taxes even higher,” Spirit Airlines Inc. (SAVE), Southwest Airlines Co. (LUV) and Allegiant Air LLC argued in court papers.
The Supreme Court under Chief Justice John Roberts has backed corporate speech rights in other contexts, striking down restrictions on violent video games, pharmaceutical marketing and political spending.
via Airlines Rejected by Top Court on Price Advertising Rules – Bloomberg.