Mistake Fares in Canada and the United States

Abstract

Like any business, airlines make mistakes in their pricing and structuring of fares, potentially costing them millions of dollars. Both Canadian and American air transportation regulators have developed regulatory frameworks to deal with airline mistake fares. Each country has taken a different approach. Canada has adopted the common-law rule of unilateral mistake, whereas the United States has created broad and complex rules governing airline mistake fares. This paper provides an overview on the history of airline mistake fares in both countries, and how they are currently regulated. Further, it provides recommendations for regulators on how to create a regulatory framework for future airline mistake fares.

Keywords: Airline mistake fare, error fare, United States, Canada, unilateral mistake, Department of Transportation, Canadian Transportation Agency, consumer protection, fuel dump