The U.S. Department of Transportation (DOT) ) launched an inquiry into the four largest U.S. airlines’ rewards programs that is aimed, according to a statement, at protecting rewards customers from potential unfair, deceptive or anticompetitive practices.

As part of the probe, Secretary of Transportation Pete Buttigieg sent letters to American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines ordering them to provide records and submit reports with detailed information about their rewards programs, practices, and policies. DOT’s probe is focused on the ways consumers participating in airline rewards programs are impacted by the devaluation of earned rewards, hidden or dynamic pricing, extra fees, and reduced competition and choice.

Buttigieg said these programs bring real value to consumers, with families often counting on airline rewards to fund a vacation or to pay for a trip to visit loved ones. But unlike a traditional savings account, he said, these rewards are controlled by a company that can unilaterally change their value. The goal, said Buttigieg, is “to ensure consumers are getting the value that was promised to them, which means validating that these programs are transparent and fair.”

Given the proliferation of rewards programs in air travel, DOT has initiated a review to examine the fairness, transparency, predictability, and competitiveness of airlines’ rewards programs. DOT has the authority to investigate and take action against airlines for unfair or deceptive practices and unfair methods of competition in air transportation or the sale of air transportation.

As part of the Department’s review, Buttigieg is ordering the four largest airlines to submit information that will allow DOT to better understand and identify potential competition or consumer protection issues or risks. The secretary has the authority to require airlines to provide special reports, information, documents, and answer questions as necessary. Buttigieg is specifically requesting information and documents relating to devaluation of earned rewards; hidden and dynamic pricing; extra fees; and reduction in competition and choice.

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