In an effort to safeguard the rights of air travelers, the U.S. Department of Transportation (DOT) has announced an investigation into the rewards programs of four major airlines – American, Delta, Southwest, and United. The move comes as part of the DOT's ongoing efforts to enhance consumer protection and ensure the fairness of airline loyalty programs.

Transportation Secretary Pete Buttigieg has ordered the four carriers to submit detailed information and records regarding their loyalty programs. The investigation is primarily focused on assessing the impact of these programs on consumers, particularly concerning the devaluation of earned rewards, hidden or dynamic pricing, additional fees, and limited competition and choice.

Secretary Buttigieg emphasized the need to validate the transparency and fairness of loyalty programs, stating, "Our goal is to ensure consumers are getting the value that was promised to them." With the power to unilaterally alter the value and terms of these programs, it is crucial to assess whether airlines are delivering on their promises.

The Biden administration has been actively working to address concerns surrounding airline policies that are deemed unfavorable to customers. In April, the DOT introduced new regulations mandating airlines to offer refunds for canceled or delayed flights and disclose all fees upfront before ticket purchases.

Secretary Buttigieg expressed reservations about loyalty programs during a recent joint hearing with the Consumer Financial Protection Bureau. He highlighted the agency's scrutiny on whether airline companies were providing customers with clear information about program benefits and ensuring they receive the promised benefits.

Furthermore, the DOT is investigating the potential influence of these loyalty programs on industry competition, particularly whether they could hinder the entry or growth of smaller airlines, thus limiting choices for consumers.

While Delta and Southwest have defended their loyalty programs, American and United directed inquiries to Airlines for America, a trade association representing major U.S. airlines. They asserted that carriers are transparent about their programs, urging policymakers to protect the continuation of these vital benefits for consumers.

It is worth noting that Delta faced significant backlash from travelers last year when it announced modifications to its SkyMiles frequent flyer program. The airline did eventually make adjustments to address the concerns raised.

The ongoing investigation by the DOT serves as a concerted effort to ensure that consumers are not only informed and protected when participating in loyalty programs but also have a diversified range of choices in the airline industry.