Consumer Protection Information - Non Governmental Agency
I am writing this note to people whom I believe to be citizen activists concerned with consumer protection issues, especially regarding Internet (e-commerce) travel sites. Based on both my own personal experience with PriceLine.com and the numerous complaints found on the Internet by consumers, it is important to bring to people's attention concerns about PriceLine.com's travel website. An educated consumer is the best consumer.
Auction Markets
Traditional (stock exchanges, art auctions) and internet auction sites (EBAY) comprise true auctions. There are bidders and sellers setting prices based on the perceived value and demand for goods, services, and investments. On the other hand, PriceLine deals in contract, "opaque fares" which they purchase from airlines. Specifically, PriceLine allows consumers to set a price with the assumption that the customer's "bid" will be matched by an "offer". However, since the ACTUAL costs of the fares are hidden from the customer, the customer is given no opportunity to reject PriceLine's offer.
Opaque Fares
What I have discovered - as many others have - is that PriceLine.com does not specifically state that they deal in OPAQUE fares. The consumer is decidedly at a disadvantage because he or she may not be aware that PriceLine.com does not actually "shop around" and find the best travel discounts. What is actually occuring is that PriceLine.com simply matches whatever proximate fare price with what the consumer entered as their price range. This matching does not consider the quality or value of the airline ticket relative to the most up to date market prices for airfares.
Buy Directly From The Airlines - Do Not Use Discount Travel Websites
Priceline is not alone in promoting their OPAQUE fares as exceptional discount deals. Nor is Priceline alone in refusing to refund money from consumers dissatisfied with the prices or itineraries (quality) of their bookings. However, it is unfortunate that Priceline is unwilling to refund the money I personally lost in a transaction with them. Nor is Priceline willing to return calls from my credit card company.
Conclusion
To conclude, airlines and credit card companies are advising consumers to work directly with the airlines who have an increased on-line presence.in my own case, I will feel satisfied only when Priceline has refunded the money I had demanded under Connecticut contract law. Most importantly, Priceline needs to be more receptive and willing to service consumer complaints. The punitive nature of Pricelines' refund policies is something it appears many consumers are aware of. This is especially sad when seeing the reactions of elderly people who are looking to economize and find they cannot have their money refunded if they are dissatisfied.
My personal case:
I lost $3300 in my dealings with Priceline. Furthermore, Pricleline would not return the calls of my Credit Card company despite the fact that Priceline stated very contradictory explanations in their communications to me of their "Name Your Price" feature.
I have been defrauded as PriceLine's web site is designed in such a way to sell customers unsatisfactory travel products. To add to this, Priceline takes a very punitive approach towards dissatisfied customers.
My chief complaints are:
1. PriceLine promotes itself as a super-discount on line travel agency. I am not a desperate consumer, but was looking for good prices. I was not aware that PriceLine deals in opaque fares which are bought "in bulk" from the airlines, therfore the discount. Opaque fares are conditional - the price for the fare cannot be revealed to the consumer until the purchase has been made.
2. The Name Your Own Price feature on PriceLine's website is misleading because clearly PriceLine did not shop the price I entered around. I was sold American Airlines tickets at $590 more than competitors' comparable airfare such as JetBlue and AirTran at the time.in fact, the itineraries for these tickets were extremely inconvenient when compared to what was generally available in the airline marketplace, especially since I was traveling with my family of five.
3. On the website, I was not given the option to review the itinerary and approve the purchase. Again - the issue of Opaque fares. I believe that any expensive transaction should be conducted in such a manner as to allow the consumer to make a final decision.
4. PriceLine will not refund my money despite my mailing a letter to their Connecticut business office within three days of the transaction stating I wanted my money back [Connecticut contract law as I understand it protects the consumer when clearly a transaction is unfair]. All my follow up EMAILS to PriceLine have been extremely frustrating as PriceLine is unwilling to admit they had sold me overpriced tickets.
Nicholas
Needham, Massachusetts
U.S.A.
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