JetBlue is facing a class action lawsuit in New York, accused of collecting consumer data without consent to charge some passengers higher ticket prices. The suit, filed by Andrew Phillips in the Eastern District of New York, alleges the low-cost airline engages in 'surveillance pricing,' a practice the company denies.
What is surveillance pricing?
Surveillance pricing involves tracking a customer's search history and location to manipulate the cost of goods. For instance, the lawsuit claims JetBlue raises the price of a seat after a customer has already viewed the airline's website. The suit states that JetBlue uses tracking technology and allows third parties to collect traveler data without adequate consent, breaching travelers' privacy.
The lawsuit's basis
According to the suit, this is one of the first class actions in U.S. history regarding dynamic surveillance pricing and the surreptitious use of consumer data to set prices based on behavior. The case largely hinges on a screenshot from an X exchange on April 18, where a user complained about a $230 increase on a ticket after one day, to which a JetBlue team member suggested clearing cache and cookies or booking with an incognito window. The plaintiff argues this is an admission that JetBlue 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.'
Political scrutiny
Following the 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 expressed concern 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 requested a response by April 30.
Phillips is suing under the Electronic Communications Privacy Act, New York's Deceptive Trade Practices Act, and New York's Unlawful Selling Practices Act.
