JetBlue Hit with RICO Class Action Over Allegedly Undisclosed Financial Ties to Trip Insurance Sales

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JetBlue Airways Corporation is staring down an amended proposed class action lawsuit filed by a consumer who claims the airline has overstepped federal antitrust law by inducing customers to buy travel insurance policies without disclosing its financial stake in policy sales. 

The lawsuit out of Florida’s Southern District alleges JetBlue falsely presents to those who visit its website that the fee charged for trip insurance is passed onto another entity with no ties to the airline. Instead, the plaintiff claims, JetBlue has intentionally omitted that when a trip insurance policy is purchased, that money goes to an independent third-party insurance broker who remits a kickback to JetBlue for every policy sold.

“JetBlue knows it lacks the required license to transact the business of insurance in any state,” the 28-page complaint reads, “which is one reason it attempts to hide its role in the travel insurance program through false statements on its website.”

According to the lawsuit, the reception of illegal monetary kickbacks on the sale of trip insurance policies is a violation of the Racketeer Influenced and Corrupt Organizations Act—RICO. Other members of the alleged RICO-violating enterprise, the complaint claims, include non-parties Allianz Global Assistance, Jefferson Insurance Company and BCS Insurance Company.