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Travelzoo fined $50,000 for failure to disclose code-share arrangements

The U.S. Department of Transportation is fining online travel company Travelzoo Inc. $50,000 for failing to properly disclose to consumers that they were selling flights operated by airlines using code-sharing arrangements.

Under code-sharing arrangements, an airline will sell tickets on flights that use its own designator code but are actually operated by a separate airline. Federal rules require airlines and ticket agents to disclose to consumers, before they book a flight, if the flight is operated under a code-sharing arrangement.

"Passengers deserve to know which airline will be operating their flight before they purchase their tickets," U.S. Transportation Secretary Ray LaHood said in a statement.

The federal department also ordered Travelzoo to cease and desist from future violations

A representative for Travelzoo was not immediately available to comment.