Providing for the Manner and Content of Airline Promotional Fare Advertisements

May 11, 2012

CAB RESOLUTION NO. 30 (BM3-05-11-2012)

IN RE : Providing for the Manner and Content of Airline Promotional Fare Advertisements, Reiterating and Clarifying for the Purpose Resolution No. 74 (2009)

WHEREAS, the Civil Aeronautics Board (the Board) is authorized by Sec. 10 (C) (2) of R.A. No. 776 to regulate the individual, joint or special rates, charges or fares, that an air carrier may demand, collect, and receive for any service in connection with air commerce and corollary matters arising therefrom;

WHEREAS, the Board, pursuant to this authority, issued Resolution No. 74 (2009), establishing parameters and procedures in the advertisement of promotional fares in any medium, in recognition of the State's policy to protect consumer interests and declare unlawful any false, deceptive, or misleading advertisements as enunciated by R.A. 7394, the Consumer Welfare Law;

WHEREAS, the Board is also working closely with the Department of Trade and Industry's Bureau of Trade Regulation and Consumer Protection in establishing a more comprehensive and detailed set of guidelines governing the holding out of promotional fare advertisements;

WHEREAS, the Board has observed that the directive contained in Resolution No. 74 requiring full disclosure of all information necessary to apprise passengers of the "actual or full/total price" of the tickets they purchase has not been fully complied with by some airlines who continue to hold out insufficiently clear and not fully transparent airline promotional advertisements; HcSaAD

WHEREAS, there is a need to strengthen, refine, clarify, or give emphasis to the parameters set by Resolution No. 74.

NOW, THEREFORE, the Board has RESOLVED, as it hereby RESOLVES, to REITERATE the following salient guidelines of Resolution No. 74 (2009) providing for the manner and matter of airline promotional fare advertisements:

"5. The advertisement of the promotional fares/rates shall be made only after the same has been approved by the CAB and have been assigned a CAB Permit (approval) number. No promotional fares/rates shall be allowed publication and/or released to any media until and unless a CAB approval/permit is granted;

"6. The content/s of the advertisement of the promotional fares/rates of airlines shall contain basic information relative to the promotional fares, such as but not limited to the restrictions, duration, conditions (refund and rebooking policies) and such other information necessary to apprise the passengers of the conditions and actual or full/total price of the ticket/s purchased. Provided, that where there are differing conditions such as fuel surcharge in relation to the points of destination or origin, airlines may provide only the range thereof and not the actual surcharge for each route;

"7. That said restrictions, conditions, duration and other information relating to the total price, as well as rebooking and refund policies mentioned in the immediately preceding paragraph, should be readable and easily noticeable;

"8. The advertisement shall contain details (i.e.,phone numbers, website, etc.) where the passenger/s can access or obtain complete and/or additional information (such as but not limited to the number of seats offered, destinations, schedules, rebooking and refund policies, etc.) relative to the promotional fares offered;

"9. Finding violation of any of the foregoing, after due notice and hearing, shall be subject to penalties and such other sanctions as may be warranted under R.A. 776; . . ."

The Board RESOLVED, further, to clarify certain matters relating to the above provisions, as follows: TcIAHS

1. "Full/total price" of the ticket as mentioned in paragraph 6 of Resolution No. 74 includes actual mention of the amount of all government taxes, the range of fuel surcharges, and the amount of all other charges.

2. "Advertisement" means the prepared, and through any form of mass medium, applied, disseminated or circulated advertising matter.

3. The guidelines on promo fare advertisements apply to advertisements published in all media, and not limited to print. Thus, they apply likewise to new and electronic media, including but not limited to cellular phone short messaging service, online social media network posts, and promotions via electronic mail.

4. Sec. 7 of aforementioned Resolution on the legibility of the fare conditions, duration, and/or restrictions is hereby interpreted to mean that the statement thereof should at least be of the same size and readability as the chosen medium's regular body text;

The Board RESOLVED, finally, to authorize the Executive Director to issue subsidiary rules in relation to the enforcement of these matters.

Adopted: May 11, 2012

Pasay City, Philippines.

(SGD.) HON. JOSE PERPETUO M. LOTILLAUndersecretary for Legal ServicesDepartment of Transportation and CommunicationsAlternate Chairman

(SGD.) HON. DANIEL G. CORPUZUndersecretary for Planning and PromotionsDepartment of TourismAlternate Vice Chairman

(SGD.) DIR. GEN. RAMON S. GUTIERREZ (COL, PAF RET)Civil Aviation Authority of the PhilippinesMember

Attested by:

(SGD.) ELDRIC PAUL A. PEREDOActing Board Secretary

Noted:

(SGD.) CARMELO L. ARCILLAExecutive Director