JetBlue Class Action Challenges Trip Insurance Kickback Scheme

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A Florida woman alleges that JetBlue deceives consumers when it comes to the travel insurance it offers to customers buying airline tickets.

Lead plaintiff Milita Barbara Dolan claims in the JetBlue class action lawsuit that, unbeknownst to consumers, the airline receives a kickback for trip insurance purchases made on its website.

However, the JetBlue class action says that consumers are not aware that JetBlue receives a kickback by how the travel insurance is presented during the purchasing process.

“On its website, and throughout the online process of purchasing a flight ticket and trip insurance, JetBlue leaves the consumer with the false impression that the charge for trip insurance is a pass-through fee, i.e., a fee that is passed on to another entity and for which JetBlue has no financial interest,” alleges the JetBlue travel insurance kickback class action lawsuit.

Though JetBlue presents itself as a passthrough entity for a third party that sells the travel insurance, the JetBlue travel insurance class action lawsuit alleges that the airline receives an undisclosed kickback from each and every policy sale.

“Indeed, JetBlue identifies this same insurance company as ‘the licensed producer,’ or insurance agent, for the trip insurance policies. In reality, and despite lacking a license to broker insurance policies, JetBlue retains or ultimately receives an undisclosed kickback from every policy sold,” states the JetBlue class action lawsuit.

The JetBlue trip insurance class action lawsuit alleges that JetBlue’s website forces customers to make an election regarding travel insurance when they purchase airline tickets from the website. The plaintiff says JetBlue heavily markets the travel insurance throughout the purchase process.

“This marketing is intended to create the impression that the trip insurance is in the consumer’s best interest—while hiding the fact that JetBlue is pushing the product because it is in its financial interest to generate sales,” contends the JetBlue class action lawsuit. “In other words, the consumer is deceived into believing that JetBlue is acting in the consumer’s best financial interest, and not its own.”

JetBlue further deceives consumers, alleges the plaintiff, by disavowing any affiliation with the travel insurance provider. In fact, the JetBlue travel insurance kickback class action lawsuit states that the airline cannot sell insurance because it does not have a license.

“Like Florida, other states across the country prohibit the unlicensed sale or brokerage of insurance, including the receipt of commissions by people or entities without a license,” points out the plaintiff.

However, although the travel insurance is purportedly underwritten by Allianz and JetBlue includes the insurance purchase on a line separate from the airline ticket charge, the airline allegedly receives a commission for each insurance purchase, contends the JetBlue class action lawsuit.

The JetBlue travel insurance kickback class action lawsuit seeks to represent a nationwide Class of consumers who purchased a trip insurance policy from the airline for alleged violations of Florida consumer law and unjust enrichment.

The JetBlue class action lawsuit is seeking damages as well as an order forcing JetBlue to fully disclose the kickbacks it received from the sale of insurance policies on its website.

The lead plaintiff is represented by Scott B. Cosgrove, Alec H. Schultz, John R. Byrne, and Jeremy L. Kahn of Leon Cosgrove LLP.

The JetBlue Travel Insurance Kickback Class Action Lawsuit is Dolan v. JetBlue Airways Corporation, Case No. 0:18-cv-62193-RNS, in the U.S. District Court for the Southern District of Florida, Fort Lauderdale Division.

UPDATE: On May 31, 2019, JetBlue travelers asked a Florida federal judge to grant Class certification in a lawsuit accusing the airline of selling travel insurance to their flyers and receiving kickbacks from the sale.