JetBlue is being accused of collecting consumer data without consent to charge some fliers higher ticket prices, according to a class action lawsuit.
The suit, filed by Andrew Phillips in the Eastern District of New York, accuses the low-cost airline of engaging in “surveillance pricing,” an accusation which the airline denies.
Surveillance pricing is the practice of keeping track of a customer’s search history and location in order to manipulate the cost of goods. For example, as the suit alleges, raising the cost of an airplane seat after a customer has already viewed the airline website.
The lawsuit states, “[JetBlue] uses tracking technology itself and otherwise allows third parties to collect, retain, and use traveler data without adequate and sufficient consent from Plaintiff and Class members using tracking technology embedded in website code. The existence of the trackers used by Defendant and by third parties on the website is a breach of travelers’ privacy.”
According to the suit, “This is one of the very first class actions in American history regarding dynamic surveillance pricing and the surreptitious use of consumer data in order to set pricing based on consumer behavior.”
The lawsuit hinges largely around a screenshot from an exchange X which occurred on April 18.
An X user said “I love flying @JetBlue but a $230 increase on a ticket after one day is crazy. I’m just trying to make it to a funeral.”
To which, a member of the JetBlue team told them “Try clearing your cache and cookies or booking with an incognito window.”
Per the defendant, this is an admission that their website stores customer data to manipulate prices.
JetBlue told The Independent, “JetBlue does not use personal information or web browsing history to set individual pricing. Fares are determined by demand and seat availability, and all customers have access to the same fares on jetblue.com and our mobile app.
“The recent social media reply was simply a mistake from an individual customer service crewmember. The steps the crewmember suggested would not have changed the airfares available for purchase.”
However, Phillips is not the only person to ask questions of JetBlue following this social media response.
Democratic lawmakers Rep. Greg Casar and Sen. Ruben Gallego sent a letter to JetBlue CEO Joanna Geraghty on Wednesday questioning the airline’s suspected use of surveillance pricing.
The letter states, “While JetBlue claimed in the wake of this post that fares are not “determined” by cached data or other personal information, this exchange still raises questions about how JetBlue sets prices — specifically, how JetBlue is defining personal data and whether personal data is used in any capacity to inform prices.
“We are especially concerned that customers could be charged different prices for the same flight based on their need for travel, such as attending a funeral.”
The lawmakers have asked for a response by April 30th.
Phillips is suing under the Electronic Communications Privacy Act, New York’s Deceptive Trade Practices Act and New York’s Unlawful Selling Practices Act.
