SAO PAULO--Brazil's leading airlines Gol Linhas Aereas
Inteligentes SA (GOL, GOLL4.BR) and Tam, were each fined 3.5
million Brazilian reais ($1.75 million) for "irregularities" in
selling travelers insurance to flyers, the country's Justice
Ministry said Friday.
Tam, which last year merged with Chile's Lan to form Latam
Airlines Group SA (LFL, LAN.SN), and Gol were being investigated
for automatically including travelers insurance in the ticket
price, the ministry said. While travelers could opt out of buying
the insurance, "customers were induced into buying travelers
insurance," constituting product bundling, which is illegal in
Brazil, the ministry said.
The collected fines will be deposited in a ministry fund that
investigates possible violations of environmental and
consumer-defense rules.
Tam and Gol didn't immediately reply to a phone call and email
seeking comment.
Write to Paulo Winterstein at paulo.winterstein@dowjones.com