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United Airlines, along with Travel Guard, National Union, and AIG, falsely advertised travel insurance benefits that are “completely illusory,” a nationwide class action lawsuit alleges.
The class action lawsuit was filed in New Jersey on May 25 by lead Plaintiff William Arce, who is accusing the companies of fraud, negligence, and unjust enrichment and suing on behalf of anyone who bought insurance on United Airlines’ website.
Arce says that the Travel Guard travel insurance sold on the site is marketed to protect consumers against cancellation or change fees, however United Airlines abolished all cancellation and change fees for its flights, obviating the need for any pre-departure insurance coverage at all.
In April, Arce purchased a United Airlines airfare for a flight to Cabo San Lucas, Mexico. On the website, Arce was asked if he wished to purchase Travel Guard insurance that would include a “flight refund if you can’t travel for a covered reason.”
According to the class action lawsuit, the website said that if Arce declined coverage, he could “otherwise be responsible for certain cancellation fees and delay expenses.” Arce bought a policy for $57.06 based on those representations, the claim states.
“The Website failed to disclose at this time that United had waived cancellation and change fees and that he would not be charged for cancelling or changing the flight,” the claim says.
“Further, the Website failed to disclose at this time that the Travel Guard insurance would not be responsible under any circumstances to refund cancellation or change fees in connection with Plaintiff’s flights.”
In March 2020, due to the coronavirus pandemic, United issued a policy to waive change fees and give one-year voluntary cancellation vouchers for all of their flights purchased before the first quarter of 2021, the claim states.
But despite the policy, United continues to “deceptively advertise and sell travel insurance policies to protect against the same perils that Refund Policy eliminated,” the class action lawsuit says.
“Misled by Defendants’ misrepresentations, Plaintiff and the proposed class members chose to purchase Defendants’ travel insurance under false pretenses,” the claim says.
“Worse, the marketing pitch for the insurance falsely threatens consumers that they will be responsible for cancellation and/or change fees if they do not purchase it.”
According to the class action lawsuit, AIG continues to advertise its policies on United’s checkout pages in exchange for commission kickbacks and advertisement fees.
“As a result of their deceptive conduct and illusory promises, Defendants are, and continue to be, unjustly enriched at the expense of their customers.”
Arce wants to represent a nationwide Class of consumers and a New Jersey subclass. He is suing for fraud, negligent misrepresentation, unjust enrichment, and violation of good faith laws. He seeks certification of the Class, damages, restitution, interest, injunctive relief, legal fees, and a jury trial.
United Airlines is also facing another class action lawsuit over claims it breached customer contracts when it offered credits instead of full flight refunds in the wake of the COVID-19 pandemic. Plaintiffs say they should have gotten full refunds from the airline when their flights were canceled in March last year, instead of travel credits.
Have you had any issues with claiming on travel insurance for flights affected by the COVID-19 pandemic? Let us know in the comments section!
Arce is represented by Yitzchak Kopel of Bursor & Fisher, P.A. and Adrian Gucovschi of Gucovschi Law, PLLC.
The United Insurance False Advertising Class Action Lawsuit is Arce v. Travel Guard Group, Inc. et al., Case No. 2:21-cv-11741, in the U.S. District Court for the District of New Jersey.
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13 thoughts onUnited Airlines Faces Class Action Lawsuit for Misleading Customers Into Buying Useless Travel Insurance
I would like more information please. I recently purchased a flight on United with travel insurance. I needed to canceled the flight and since United has 24hr cancellation policy I was refunded all my money except the $97.18 for insurance. When I noticed it on my statement I contacted the Insurance company and explained to them I canceled within 24 hours. The gave me the email contact and told me I need to put it in writing.
I received a response stating my request for a refund was denied because I failed to notify them in writing within 15 days of cancellation.
At no time was this explained to me prior to me booking the flight or I wouldn’t have purchased the insurance.
Add me to the class action please
Add me please