LATAM Fined BIG for Charging Illegal Booking Fees in Brazil

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May 27. Brazil’s Minas Gerais Consumer Protection Agency (ProconMG) fined the LATAM Airlines Group after the airline was caught illegally charging for early booking of non-differentiated seats. The carrier now has to pay 10.8 million reais (around US$2.2 million). Let’s investigate further.

Yesterday, Procon-MG, the consumer protection agency in Minas Gerais, a Brazilian state, released a statement announcing a hefty fine against LATAM Brazil. The decision to fine LATAM was taken after the airline was notified and had a hearing in which it showed no interest in signing an agreement adjusting its conduct.

LATAM argued that it is perfectly legal to charge seat allocation. Many airlines do this and create ancillary revenues while also benefiting from the system of freedom of tariffs in the civil aviation market. Choosing a specific seat is an additional service to the contract acquired when buying a ticket.

Nonetheless, according to Procon-MG, in this case, the seat had no specific characteristics, such as onboard services, more physical space between seats, or convenience; therefore, it wasn’t a differentiated seat.

Source: Simple Flying

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125230cookie-checkLATAM Fined BIG for Charging Illegal Booking Fees in Brazil