by Thomas Hinton
What began as a gas pedal design flaw and floormat problem for one of the world’s most respected automotive companies has mushroomed into a public relations nightmare for Toyota. Consumers are deeply troubled by Toyota's media posturing and potholed explanations. We want to know the full story. Consumers are entitled to know why this problem developed into a serious issue and resulted in the deaths of innocent people who trusted the Toyota brand. Telling the American consumer the full story is the only way Toyota can salvage its brand image and reputation because the problem is now beyond damage control.
Some journalists and persons familiar with the recall claim that Toyota's leadership knew about the gas pedal and accelerator problems nearly two years ago. But senior management failed to take action to correct the problems until the National Highway Traffic Safety Administration forced its hand by mandating a recall of 4.2 million vehicles. If this is true, Toyota’s reputation for quality and customer care will be severely tarnished.
If, in fact, Toyota’s management had early knowledge of a manufacturing and performance flaw with its accelerators and gas pedals, and failed to act, the company is not only potentially guilty of criminal acts, but its management is guilty of customer abuse - pure and simple! Whenever management places its bottom-line interests ahead of the safety and lives of its customers, it should be terminated.
Amid the growing crises, Toyota has tried to put a positive spin on the issue by taking out full-page ads in 20 newspapers across the nation to reassure customers they are fixing the problem. But, Toyota’s message in the ads is neither clear nor reassuring to consumers. The ads only raise more questions including “Who knew what, when?” And, "why didn't management act sooner to protect the lives of Toyota's valued customers?"
The underlying issue for Toyota's customers is one of credibility. Consumers are questioning Toyota's integrity. Public opinion is turning against Toyota because consumers think the company's senior leadership knew about the faulty gas pedal design and accelerator flaw long before any action was ever taken to correct these problems thus jeopardizing unsuspecting drivers including a California Highway Patrol officer who was a skilled driver but could not control his malfunctioning Lexus as it accelerated to 120 mph. He and three family members died in a fiery crash near San Diego.
The fact that Toyota's senior management allowed this problem to escalate into a public relations disaster also raises questions about their competence let alone their commitment to Toyota's high principles and values. But, the key question consumers want answered is this. Why did people have to endure injury and even die as a result of Toyota’s slow response, or worse, management inaction? It is these questions that are keeping potential buyers out of Toyota dealerships. If Toyota wants customers to start visiting showrooms again and buying their autos, the company must come forward and respond truthfully and completely to these serious allegations and unanswered questions.
Allowing Toyota’s North American chief, Jim Lutz, to appear on NBC’s Today show to explain how the company is fixing the problem is not the answer. Consumers already know Toyota is fixing the problem. What consumers want are answers to the troubling questions like “Who knew what?" and "When did they know?”
Toyota should remember that consumers can be very understanding and forgiving during troubled times when a company does the right thing. Consider the tremendous outpouring of support Johnson & Johnson experienced from consumers in 1982 when seven people died after taking pain-relief Tylenol capsules that had been laced with cyanide poison. Today, Tylenol and Johnson & Johnson enjoy a greater market share than ever before because they did the right thing. In fact, the Tylenol tampering incident has become a model case study for how a company should behave and respond in times of crisis.
Regrettably, it seems Toyota’s management hasn’t read the Tylenol case study. If only Toyota’s leadership had acted sooner, perhaps those people who tragically died from the flawed gas petals and accelerator malfunctions would still be alive. These people are the ultimate victims of management deceit, incompetence and inaction.
About the Author. Thomas Hinton is president of the American Consumer Council, a non-profit consumer education organization with more than 90,000 members and 38 state affiliate organizations across the United States. He can be reached at: tom@americanconsumercouncil.org
Monday, February 1, 2010
Sunday, January 31, 2010
A Disappointing Consumer Report Card for President Obama and Congress in Year One
by Thomas Hinton
With the new year and decade just one month old, consumers are twitching nervously over the slow progress President Obama is making with his Democratic majority in Congress to jump-start America’s sluggish economy. Promises have been made and the president and his party have been very slow in delivering results. From a consumer perspective, the president fairs no better than a C+ while the Congress barely earns a passing grade of D.
Despite all the posturing, politics and rancor on Capitol Hill, not much has been accomplished to give consumers hope that a new era is upon us. The expression “herding cats” comes to mind when one thinks of the challenges Senate Majority Leader Harry Reid (D-NV) faces in getting his Democrats lined-up to support vital consumer legislation including Financial/Banking Reform, Consumer Protection, Health Care Reform and Mortgage Relief.
These issues should have been a slam dunk for the Democrats, but a lack of leadership and lax discipline has allowed the opposition to muddle the process and paint Speaker of the House Nancy Pelosi (D-CA) and Senator Reid into a very uncomfortable corner labeled non-performance. At least that’s how a majority of consumers responded when asked recently about the performance of President Obama and the Democrats for the past year. Certainly, the president and his party must do better if they expect to win the hearts and minds of concerned consumers.
Despite his gift for oratory, his persuasive personality and political charm, it appears Mr. Obama drifted from his Change theme in the 2008 election and allowed Congress to derail his legislative agenda. These are tough times and they call for strong-arm tactics similar to what LBJ used to push through his Great Society legislation and Civil Rights reform. Instead of wasting his time trying to build a consensus with Republicans, President Obama needs to produce results. As demonstrated by the stunning election of Republican Scott Brown in Massachusetts, voters have a short memory and will always vote their pocketbook, especially in tough economic times.
From a consumer perspective, the president needs to get out in front of the band and start leading the change he promised to deliver. If consumer confidence is any indicator, Americans remain seriously concerned about three issues: the lack of jobs and high unemployment; mortgage delinquencies and foreclosure rates; and, the rising cost of health care. With the exception of giving our military what it needs to win the fight in Iraq and Afghanistan, everything else can wait. It may be important, but it’s not vital to our economic recovery.
Trying to win the hearts and minds of the opposition is a waste of the president’s time. With all due respect to the opposition, I would say the same thing if the Republicans occupied the White House. Of course, when Mr. Bush was president, he was deferential to Democrats, but plowed ahead to get his legislative issues passed by Congress. And, the Democrats controlled both chambers!
So, my advice to the president and the Democrats can be summed up in the words of Republican Governor Arnold Schwarzenegger, “Sorry. No more Mr. Nice Guy!”
There’s much work to be done and the time is now for President Obama to refocus his priorities and redouble his efforts to put Americans back to work, solve the mortgage and foreclosure problem in favor of struggling homeowners and get health care reform approved. If he can accomplish these three things in 2010, his Consumer Report Card grade will improve significantly. But, the clock is ticking!
About the Author: Thomas Hinton is president & CEO of the American Consumer Council, a non-profit consumer education organization dedicated to helping consumers make safe, reliable purchases of products and services that strengthen the American economy. He can be reached at: tom@americanconsumercouncil.org
With the new year and decade just one month old, consumers are twitching nervously over the slow progress President Obama is making with his Democratic majority in Congress to jump-start America’s sluggish economy. Promises have been made and the president and his party have been very slow in delivering results. From a consumer perspective, the president fairs no better than a C+ while the Congress barely earns a passing grade of D.
Despite all the posturing, politics and rancor on Capitol Hill, not much has been accomplished to give consumers hope that a new era is upon us. The expression “herding cats” comes to mind when one thinks of the challenges Senate Majority Leader Harry Reid (D-NV) faces in getting his Democrats lined-up to support vital consumer legislation including Financial/Banking Reform, Consumer Protection, Health Care Reform and Mortgage Relief.
These issues should have been a slam dunk for the Democrats, but a lack of leadership and lax discipline has allowed the opposition to muddle the process and paint Speaker of the House Nancy Pelosi (D-CA) and Senator Reid into a very uncomfortable corner labeled non-performance. At least that’s how a majority of consumers responded when asked recently about the performance of President Obama and the Democrats for the past year. Certainly, the president and his party must do better if they expect to win the hearts and minds of concerned consumers.
Despite his gift for oratory, his persuasive personality and political charm, it appears Mr. Obama drifted from his Change theme in the 2008 election and allowed Congress to derail his legislative agenda. These are tough times and they call for strong-arm tactics similar to what LBJ used to push through his Great Society legislation and Civil Rights reform. Instead of wasting his time trying to build a consensus with Republicans, President Obama needs to produce results. As demonstrated by the stunning election of Republican Scott Brown in Massachusetts, voters have a short memory and will always vote their pocketbook, especially in tough economic times.
From a consumer perspective, the president needs to get out in front of the band and start leading the change he promised to deliver. If consumer confidence is any indicator, Americans remain seriously concerned about three issues: the lack of jobs and high unemployment; mortgage delinquencies and foreclosure rates; and, the rising cost of health care. With the exception of giving our military what it needs to win the fight in Iraq and Afghanistan, everything else can wait. It may be important, but it’s not vital to our economic recovery.
Trying to win the hearts and minds of the opposition is a waste of the president’s time. With all due respect to the opposition, I would say the same thing if the Republicans occupied the White House. Of course, when Mr. Bush was president, he was deferential to Democrats, but plowed ahead to get his legislative issues passed by Congress. And, the Democrats controlled both chambers!
So, my advice to the president and the Democrats can be summed up in the words of Republican Governor Arnold Schwarzenegger, “Sorry. No more Mr. Nice Guy!”
There’s much work to be done and the time is now for President Obama to refocus his priorities and redouble his efforts to put Americans back to work, solve the mortgage and foreclosure problem in favor of struggling homeowners and get health care reform approved. If he can accomplish these three things in 2010, his Consumer Report Card grade will improve significantly. But, the clock is ticking!
About the Author: Thomas Hinton is president & CEO of the American Consumer Council, a non-profit consumer education organization dedicated to helping consumers make safe, reliable purchases of products and services that strengthen the American economy. He can be reached at: tom@americanconsumercouncil.org
Wednesday, January 6, 2010
America Needs Consumer Protection and Financial Reform Now!
It’s hard to believe that a year after the American financial system nearly collapsed due to corporate greed, shady lending practices and shoddy regulatory oversight, Congress has yet to pass a financial reform bill. However, we are moving in the right direction with the recent passage by the House of Representatives which approved a financial reform bill intended to re-regulate Wall Street and increase protections for Main Street.
The bill, which passed in a 223-202 vote, would create a new federal agency dedicated to protecting consumers that would police consumer credit products like mortgages and credit cards. It also establishes new rules for the trading of derivatives and increases the transparency of the credit-rating process -- two previously under-regulated parts of the economy that played a large role in last year's economic collapse.
What is very disturbing was that not a single Republican voted for the bill. Twenty-seven Democrats broke with the rest of their party to vote against it. I would think there would be bipartisan support for financial reform because, without it, America’s economy is vulnerable and susceptible to another financial disaster of epic proportions. But, politics and lobbyists continue to undermine this important legislation.
Despite the millions Wall Street and the Chamber of Commerce spent fighting the will of the American consumers, the House of Representatives found the political will and courage to pass the proposed financial reform legislation and send it on to the Senate for their deliberation and vote.
While the proposed legislation will disappointed some consumer groups, the American Consumer Council strongly endorses the reform legislation and encourages the United States Senate to pass it.
About the Author: Thomas Hinton is president of the American Consumer Council, a non-profit consumer education organization which administers ACC’s Green C™ Certification Program. He can be reached at tom@americanconsumercouncil.org
The bill, which passed in a 223-202 vote, would create a new federal agency dedicated to protecting consumers that would police consumer credit products like mortgages and credit cards. It also establishes new rules for the trading of derivatives and increases the transparency of the credit-rating process -- two previously under-regulated parts of the economy that played a large role in last year's economic collapse.
What is very disturbing was that not a single Republican voted for the bill. Twenty-seven Democrats broke with the rest of their party to vote against it. I would think there would be bipartisan support for financial reform because, without it, America’s economy is vulnerable and susceptible to another financial disaster of epic proportions. But, politics and lobbyists continue to undermine this important legislation.
Despite the millions Wall Street and the Chamber of Commerce spent fighting the will of the American consumers, the House of Representatives found the political will and courage to pass the proposed financial reform legislation and send it on to the Senate for their deliberation and vote.
While the proposed legislation will disappointed some consumer groups, the American Consumer Council strongly endorses the reform legislation and encourages the United States Senate to pass it.
About the Author: Thomas Hinton is president of the American Consumer Council, a non-profit consumer education organization which administers ACC’s Green C™ Certification Program. He can be reached at tom@americanconsumercouncil.org
Thursday, October 1, 2009
The Baucus Healthcare Debacle
by Thomas Hinton
For several months, the Senate Finance Committee has labored to draft healthcare legislation. Its original intent was to help millions of uninsured Americans gain access to affordable healthcare. What began as a noble cause has deteriorated to the point where the proposed legislation looks more like a rescue bill for the health insurance industry than a lifeline for 36 million uninsured Americans.
For now, healthcare reform has become Senator Max Baucus' healthcare debacle. Senator Baucus, the Democratic Chairman of the Senate Finance Committee, claims to support universal healthcare as well as a public option for health insurance. However, he cannot seem to wiggle free from the chains of the health insurance lobby that has padded his campaign coffers with nearly $3 million in contributions. How can such a person make a rational decision and act without bias towards the best interest of our nation? The fact is he can't.
What confounds me is why this issue is so difficult. We are the richest nation in the world and yet, we are the only industrialized nation that does not provide its citizens universal healthcare coverage, let alone affordable access to the world's finest professional healthcare system. Yes, it costs money; and, yes, taxpayers must foot the bill. But, if the Congress does not act quickly and authorize a sensible long-term solution to our growing healthcare crisis, we will be saddled with trillions of dollars in healthcare costs that no one will be able to afford.
I believe the real healthcare question before us is an ethical question. Does the government of the United States of America have an ethical responsibility to all its citizens to provide them affordable access to healthcare? If the answer is yes -- and I believe it is -- then related issues such as how Americans access physicians, hospitals and clinics -- and whether the government creates a single-payer system or allows the current multi-payer system to remain in place -- are much easier to solve.
But, Senator Baucus and other Democratic senators cowered in the face of minority opposition. They voted down amendments to include the public option insurance program and, instead, endorsed a watered-down healthcare bill that will not meet the needs of the uninsured. His committee was asked to create a race horse and, instead, it created a camel! The proposed legislation will not solve the problem of rising healthcare costs. It only builds on the financial interests of greedy health insurance companies who already have veto power over medical insurance claims and the authority to deny treatment to thousands of Americans who desperately need medical attention and life-saving care.
If the Congress continues down its current path, the end result will be a significant defeat for the Democratic majority who have, thus far, squandered their electoral goodwill and grossly disappointed a significant majority of Americans who elected this Congress to bring about change. Part of the "change" covenant includes facing down the minority opposition that has crippled our nation economically during the previous eight years and standing up for those Americans whose voices have not been heard in years. Now is the time for the Democratic-controlled Congress to flex its muscle and have the courage to pass meaningful healthcare reform that insures the uninsured. Damn the opposition and full speed ahead! It's time the Congress did what's right!
About the Author. Thomas Hinton is president of the American Consumer Council and a frequent speaker at corporate and association meetings on business excellence topics. He can be reached at: tom@americanconsumercouncil.org
For several months, the Senate Finance Committee has labored to draft healthcare legislation. Its original intent was to help millions of uninsured Americans gain access to affordable healthcare. What began as a noble cause has deteriorated to the point where the proposed legislation looks more like a rescue bill for the health insurance industry than a lifeline for 36 million uninsured Americans.
For now, healthcare reform has become Senator Max Baucus' healthcare debacle. Senator Baucus, the Democratic Chairman of the Senate Finance Committee, claims to support universal healthcare as well as a public option for health insurance. However, he cannot seem to wiggle free from the chains of the health insurance lobby that has padded his campaign coffers with nearly $3 million in contributions. How can such a person make a rational decision and act without bias towards the best interest of our nation? The fact is he can't.
What confounds me is why this issue is so difficult. We are the richest nation in the world and yet, we are the only industrialized nation that does not provide its citizens universal healthcare coverage, let alone affordable access to the world's finest professional healthcare system. Yes, it costs money; and, yes, taxpayers must foot the bill. But, if the Congress does not act quickly and authorize a sensible long-term solution to our growing healthcare crisis, we will be saddled with trillions of dollars in healthcare costs that no one will be able to afford.
I believe the real healthcare question before us is an ethical question. Does the government of the United States of America have an ethical responsibility to all its citizens to provide them affordable access to healthcare? If the answer is yes -- and I believe it is -- then related issues such as how Americans access physicians, hospitals and clinics -- and whether the government creates a single-payer system or allows the current multi-payer system to remain in place -- are much easier to solve.
But, Senator Baucus and other Democratic senators cowered in the face of minority opposition. They voted down amendments to include the public option insurance program and, instead, endorsed a watered-down healthcare bill that will not meet the needs of the uninsured. His committee was asked to create a race horse and, instead, it created a camel! The proposed legislation will not solve the problem of rising healthcare costs. It only builds on the financial interests of greedy health insurance companies who already have veto power over medical insurance claims and the authority to deny treatment to thousands of Americans who desperately need medical attention and life-saving care.
If the Congress continues down its current path, the end result will be a significant defeat for the Democratic majority who have, thus far, squandered their electoral goodwill and grossly disappointed a significant majority of Americans who elected this Congress to bring about change. Part of the "change" covenant includes facing down the minority opposition that has crippled our nation economically during the previous eight years and standing up for those Americans whose voices have not been heard in years. Now is the time for the Democratic-controlled Congress to flex its muscle and have the courage to pass meaningful healthcare reform that insures the uninsured. Damn the opposition and full speed ahead! It's time the Congress did what's right!
About the Author. Thomas Hinton is president of the American Consumer Council and a frequent speaker at corporate and association meetings on business excellence topics. He can be reached at: tom@americanconsumercouncil.org
Saturday, September 26, 2009
Reading the Economic Tea Leaves: This Recession is Far from Over!
For the past month, I’ve been scanning newspapers, watching CNBC and other economic news stations and listening to radio talk show experts to find out how our economy is doing. To my surprise, Federal Reserve Chairman Ben Bernanke announced that the recession is all but over. However, in reading the economic tea leaves, I don’t think so. There's no such message in my fortune cookies!
The reasons I have serious doubts about this recession are simple. We still face four serious problems that will continue to stall a recovery until they are solved. First, many consumers are flat broke. They’ve spent their savings during the past two years and cannot afford to buy expensive items like cars and vacations. Secondly, the American economy is still bleeding jobs. Until companies start hiring en masse to replace the millions of jobs lost during the past three years, most consumers will not spend money. They’re afraid their job might be cut next. Thirdly, a staggering number of homeowners continue to struggle with their mortgage payments. Because of wage cuts, job losses and savings depletion, the threat of foreclosure remains serious for many American homeowners. Fourthly, the average American, who has healthcare insurance, is struggling to pay their healthcare premiums which continue to rise. Each day, thousands of Americans are being forced to make the painful decision to abandon their healthcare insurance because they can no longer afford it.
So, while I’m pleased that Mr. Bernanke thinks this recession is almost over, I disagree. I think it’s far from over. And, while I’m pleased Wall Street is making a strong comeback, that isn’t what’s going to revive and sustain the American economy. The ultimate antidote to nursing our economy back to health is consumer spending; and, that’s not going to happen until we solve the four problems I’ve noted.
About the Author:
Tom Hinton is president of the American Consumer Council. He is also a popular business author and speaker who writes frequently on consumer issues and business trends. He can be reached at tom@americanconsumercouncil.org
The reasons I have serious doubts about this recession are simple. We still face four serious problems that will continue to stall a recovery until they are solved. First, many consumers are flat broke. They’ve spent their savings during the past two years and cannot afford to buy expensive items like cars and vacations. Secondly, the American economy is still bleeding jobs. Until companies start hiring en masse to replace the millions of jobs lost during the past three years, most consumers will not spend money. They’re afraid their job might be cut next. Thirdly, a staggering number of homeowners continue to struggle with their mortgage payments. Because of wage cuts, job losses and savings depletion, the threat of foreclosure remains serious for many American homeowners. Fourthly, the average American, who has healthcare insurance, is struggling to pay their healthcare premiums which continue to rise. Each day, thousands of Americans are being forced to make the painful decision to abandon their healthcare insurance because they can no longer afford it.
So, while I’m pleased that Mr. Bernanke thinks this recession is almost over, I disagree. I think it’s far from over. And, while I’m pleased Wall Street is making a strong comeback, that isn’t what’s going to revive and sustain the American economy. The ultimate antidote to nursing our economy back to health is consumer spending; and, that’s not going to happen until we solve the four problems I’ve noted.
About the Author:
Tom Hinton is president of the American Consumer Council. He is also a popular business author and speaker who writes frequently on consumer issues and business trends. He can be reached at tom@americanconsumercouncil.org
Reading the Economic Tea Leaves: The Recession Isn't Over Yet!
For the past month, I’ve been scanning newspapers, watching CNBC and other economic news stations and listening to radio talk show experts to find out how our economy is doing. Then, to my surprise, Federal Reserve Chairman Ben Bernanke announced that the recession is all but over. But in reading the economic tea leaves, I don’t think so.
The reasons I have my doubts are simple. We still face four serious problems that will continue to stall a recovery until they are solved. First, many consumers are flat broke. They’ve spent their savings during the past two years and cannot afford to buy expensive items like cars and vacations. Secondly, the American economy is still bleeding jobs. Until companies start hiring en masse to replace the millions of jobs lost during the past three years, most consumers will not spend money. They’re afraid their job might be cut next. Thirdly, a staggering number of homeowners continue to struggle with their mortgage payments. Because of wage cuts, job losses and savings depletion, the threat of foreclosure remains serious for many American homeowners. Fourthly, the average American, who has healthcare insurance, is struggling to pay their healthcare premiums which continue to rise. Each day, thousands of Americans are being forced to make the painful decision to abandon their healthcare insurance because they can no longer afford it.
So, while I’m pleased that Mr. Bernanke thinks this recession is almost over, I disagree. I think it’s far from over. And, while I’m pleased Wall Street is making a strong comeback, that isn’t what’s going to revive and sustain the American economy. The ultimate antidote to nursing our economy back to health is consumer spending; and, that’s not going to happen until we solve the four problems noted above.
About the Author:
Tom Hinton is America's Expert on Business Excellence. He is a popular business author and speaker who writes frequently on consumer issues and business trends. He can be reached at tom@tomhinton.com
The reasons I have my doubts are simple. We still face four serious problems that will continue to stall a recovery until they are solved. First, many consumers are flat broke. They’ve spent their savings during the past two years and cannot afford to buy expensive items like cars and vacations. Secondly, the American economy is still bleeding jobs. Until companies start hiring en masse to replace the millions of jobs lost during the past three years, most consumers will not spend money. They’re afraid their job might be cut next. Thirdly, a staggering number of homeowners continue to struggle with their mortgage payments. Because of wage cuts, job losses and savings depletion, the threat of foreclosure remains serious for many American homeowners. Fourthly, the average American, who has healthcare insurance, is struggling to pay their healthcare premiums which continue to rise. Each day, thousands of Americans are being forced to make the painful decision to abandon their healthcare insurance because they can no longer afford it.
So, while I’m pleased that Mr. Bernanke thinks this recession is almost over, I disagree. I think it’s far from over. And, while I’m pleased Wall Street is making a strong comeback, that isn’t what’s going to revive and sustain the American economy. The ultimate antidote to nursing our economy back to health is consumer spending; and, that’s not going to happen until we solve the four problems noted above.
About the Author:
Tom Hinton is America's Expert on Business Excellence. He is a popular business author and speaker who writes frequently on consumer issues and business trends. He can be reached at tom@tomhinton.com
American Consumers Blast Airlines for Deceptive Fees
Thomas Hinton, president and CEO of the American Consumer Council (ACC), has sharply criticized ten domestic airlines for using deceptive pricing practices to take advantage of unsuspecting consumers who fly their airlines. According to the Department of Transportation's Bureau of Transportation Statistics, a recent report shows that domestic airlines collected $3.8 billion in non-ticket fees for checking bags, the cancellation and re-booking of flights, carrying pets aboard planes and assigning seats.
The ten domestic airlines that Hinton criticized during CNBC's Power Lunch program included: American, Delta, U.S. Airways, United, Northwest, Continental, AirTran, Spirit, Frontier and JetBlue. Hinton said the ten airlines collected more than $669 million dollars in baggage fee revenues alone during the 2nd quarter of 2009. Hinton claimed that "many of those baggage fees were collected from unsuspecting travelers and who were unfairly charged."
On CNBC's Power Lunch program, Hinton also stated, "These types of a la carte pricing practices are unfair, deceptive and should be stopped by the airlines or, if necessary, a class action lawsuit."
Hinton explained that most travelers assume when they purchase an airline ticket, it entitles them to receive an assigned seat, check a piece of luggage and receive a snack and beverage aboard their flight. Hinton added, "These ten airlines should be upfront and truthful with consumers by including these traditional items in the cost of a ticket. To do otherwise, is viewed as deceptive and under-handed."
Hinton also questioned the credibility of the airlines industry because of recent problems with extended flight delays, an increase in the number of lost bags and the mishandling of luggage. Hinton referenced the "United Breaks Guitars" You Tube video by musician Dave Carroll, a United Airline passenger, whose expensive guitar was tossed around like a football on the tarmac of Chicago's O'Hare Airport by United Airline baggage handlers. United Airlines denied responsibility for nine months until the popularity of the You Tube video forced the airline to make amends.
Giving credit where it was due, Hinton did praise Southwest Airlines as the only major domestic airline that practices ethical and fair pricing because they do not charge under-the-table fees or service charges for baggage, pets, or in-flight meals.
Hinton noted that unsuspecting travelers must often pay an extra $50 - $100 per flight as a result of the service charges and fees tacked-on by airlines at the airport. He called on consumers to express their displeasure with the ten domestic airlines that are "manipulating ticket prices by using 'tack-on fees' and service charges to boost the true cost of travel." Hinton encouraged CNBC viewers to "tell the airlines you don't like their deceptive and unfair pricing tactics."
Hinton also renewed his call on Congress to pass the Airline Passengers' Bill of Rights claiming, "Nothing has been done by the airline industry during the past year to improve customer service, treat consumers fairly or instill ethical pricing tactics so the real cost of travel is transparent."
The ten domestic airlines that Hinton criticized during CNBC's Power Lunch program included: American, Delta, U.S. Airways, United, Northwest, Continental, AirTran, Spirit, Frontier and JetBlue. Hinton said the ten airlines collected more than $669 million dollars in baggage fee revenues alone during the 2nd quarter of 2009. Hinton claimed that "many of those baggage fees were collected from unsuspecting travelers and who were unfairly charged."
On CNBC's Power Lunch program, Hinton also stated, "These types of a la carte pricing practices are unfair, deceptive and should be stopped by the airlines or, if necessary, a class action lawsuit."
Hinton explained that most travelers assume when they purchase an airline ticket, it entitles them to receive an assigned seat, check a piece of luggage and receive a snack and beverage aboard their flight. Hinton added, "These ten airlines should be upfront and truthful with consumers by including these traditional items in the cost of a ticket. To do otherwise, is viewed as deceptive and under-handed."
Hinton also questioned the credibility of the airlines industry because of recent problems with extended flight delays, an increase in the number of lost bags and the mishandling of luggage. Hinton referenced the "United Breaks Guitars" You Tube video by musician Dave Carroll, a United Airline passenger, whose expensive guitar was tossed around like a football on the tarmac of Chicago's O'Hare Airport by United Airline baggage handlers. United Airlines denied responsibility for nine months until the popularity of the You Tube video forced the airline to make amends.
Giving credit where it was due, Hinton did praise Southwest Airlines as the only major domestic airline that practices ethical and fair pricing because they do not charge under-the-table fees or service charges for baggage, pets, or in-flight meals.
Hinton noted that unsuspecting travelers must often pay an extra $50 - $100 per flight as a result of the service charges and fees tacked-on by airlines at the airport. He called on consumers to express their displeasure with the ten domestic airlines that are "manipulating ticket prices by using 'tack-on fees' and service charges to boost the true cost of travel." Hinton encouraged CNBC viewers to "tell the airlines you don't like their deceptive and unfair pricing tactics."
Hinton also renewed his call on Congress to pass the Airline Passengers' Bill of Rights claiming, "Nothing has been done by the airline industry during the past year to improve customer service, treat consumers fairly or instill ethical pricing tactics so the real cost of travel is transparent."
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