American Airlines, Inc. v. Wolens, 513 U.S. 219, 10 (1995)

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228

AMERICAN AIRLINES, INC. v. WOLENS

Opinion of the Court

sumer Fraud Act. For example, the guidelines enforcing the legislation instruct airlines on language appropriate to reserve rights to alter frequent flyer programs, and they include transition rules for the fair institution of capacity controls. See Brief for United States as Amicus Curiae 13-14, n. 7.

As the NAAG guidelines illustrate, the Consumer Fraud Act serves as a means to guide and police the marketing practices of the airlines; the Act does not simply give effect to bargains offered by the airlines and accepted by airline customers. In light of the full text of the preemption clause, and of the ADA's purpose to leave largely to the airlines themselves, and not at all to States, the selection and design of marketing mechanisms appropriate to the furnishing of air transportation services,4 we conclude that § 1305(a)(1) preempts plaintiffs' claims under the Consumer Fraud Act.

B

American maintains, and we agree, that "Congress could hardly have intended to allow the States to hobble [competition for airline passengers] through the application of restrictive state laws." Brief for Petitioner 27. We do not read the ADA's preemption clause, however, to shelter airlines from suits alleging no violation of state-imposed obligations, but seeking recovery solely for the airline's alleged breach of its own, self-imposed undertakings. As persuasively argued by the United States, terms and conditions airlines offer and passengers accept are privately ordered obligations

4 We note again, however, that the DOT retains authority to investigate unfair and deceptive practices and unfair methods of competition by airlines, and may order an airline to cease and desist from such practices or methods of competition. See FAA § 411, 49 U. S. C. App. § 1381(a); Morales, 504 U. S., at 379; see also Brief for United States as Amicus Curiae 3, and n. 2 (reporting that in 1993, the DOT issued 34 cease-and-desist orders and assessed more than $1.8 million in civil penalties in aviation economic enforcement proceedings).

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