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| Seven Korean Air customers filed a complaint with the Fair Trade Commission (FTC), Monday, alleging unfair trading over proposed changes to the company's loyalty program./ Korea Times files |
By Kim Se-jeong
Seven Korean Air customers filed a complaint with the Fair Trade Commission (FTC), Monday, alleging unfair trading over proposed changes to the company's loyalty program.
According to Citizens United for Customer Sovereignty, a local civic group that helped the seven file the complaint, the carrier's recent announced changes its loyalty program violate monopoly regulations and fair trade laws.
"We believe what Korean Air is trying to do violates fair trade principles and infringes on consumers' rights to choose cheaper and freer goods and services," the civic group said in a press release after filing the complaint. "Korean Air clearly violated the fair trade laws that ban abuse by a market monopoly . . . and promote fair and free competition."
The much-anticipated move will be followed by a class action lawsuit filed law firm Taelim that is reportedly assisting customers to file a complaint asking the FTC to rule that Korean Air violated the law.
It could take months until the FTC makes a decision, as it will have to review documents and interview customers and company representatives.
The national flag carrier announced the changes to its loyalty program Dec. 13.
Among the changes, first- and prestige-class passengers will be able to accumulate more mileage points than economy passengers over the same distance. Also, the carrier will give fewer points to people who buy tickets at discounted prices.
And more points will be needed to buy tickets than currently ― the Incheon-New York route will require 90,000 mileage points up from 62,500.
The changes are expected to take effect from April 2021.
Speaking to The Korea Times recently, a Korean Air official said the company was only following the global trend.
"Korean Air reflects the international trend in mileage programs and expects customers to accumulate and use their mileage points more rationally," the official said.
