Facua Reports 4 Airlines to Spain Over Unfair Gift Card Rules

Spanish consumer organization Facua Consumers in Action has filed a formal complaint against four airlines—Ryanair, Iberia, Transavia, and Wizz Air—with the country's Ministry of Consumer Affairs. The complaint alleges that the carriers employ abusive practices related to the sale and redemption of gift cards, specifically citing expiry dates and administrative fees.

This action represents the latest front in a widening conflict between airlines and Spanish regulators over ancillary revenue streams. Facua argues that imposing a time limit on gift vouchers, after which the balance is forfeited, constitutes an unfair contract term. The organization contends that once the deadline passes, the airline retains the customer's payment without providing any corresponding flight or service, creating a significant imbalance against the consumer.

The Complaint's Core Allegations

The complaint targets the common airline practice of setting a validity period for gift vouchers. Most of the named airlines, including Ryanair and Iberia, set a 12-month expiry date from the time of issue. Transavia offers a two-year period. According to the complaint filed by Facua (Federación de Asociaciones de Consumidores y Usuarios de Andalucía), this practice allows airlines to "unilaterally terminate the contract" and "appropriate the amount paid."

Ryanair faces additional criticism for what it terms an "administrative fee" for issuing the vouchers. The airline charges €2 for digital gift cards and €5 for physical cards sent by post. Facua asserts this is also an abusive practice, as it imposes an extra cost on the consumer without providing any tangible additional service. The organization argues these practices violate Spain's General Law for the Defence of Consumers and Users.

A Pattern of Regulatory Scrutiny

This complaint does not exist in isolation. It follows a landmark decision last year where Spain's Ministry of Consumer Affairs fined five budget airlines a total of €179 million for practices deemed abusive, most notably charging for cabin baggage. According to reports in The Guardian, Ryanair's portion of that fine was the largest at €108 million, with Vueling, EasyJet, Norwegian, and Volotea also receiving significant penalties.

Facua's complaint also cites historical precedent, referencing a 2011 ruling by Spain’s Consumer Cooperation Commission. That ruling established that expiry clauses on gift vouchers could be considered abusive if they create a substantial imbalance detrimental to the consumer. This suggests a long-standing legal basis for challenging such terms in Spain.

Broader Industry Pressures

The regulatory challenge comes as Ryanair is engaged in a separate dispute with Spain's state-owned airport operator, Aena (Aeropuertos Españoles y Navegación Aérea). Aena has proposed an airport charge increase, which airlines argue will inevitably lead to higher ticket prices for passengers. This places airlines, particularly low-cost carriers, under financial and regulatory pressure from multiple directions within the Spanish market.

The situation is further complicated by a conflict between national and European Union regulations. The European Commission has previously challenged Spain's fines related to hand luggage, arguing they contravene EU laws granting airlines the freedom to set their own prices. This creates a contentious environment where national consumer protection efforts clash with EU single market principles.

The Ministry of Consumer Affairs will now review Facua's complaint and determine whether to initiate sanctioning proceedings against the four airlines. The potential outcomes range from a dismissal of the complaint to an investigation and possible fines.

Why This Matters

In my view, this case is about more than just gift cards. It's a key indicator of the growing tension between the low-cost carrier business model, which relies heavily on ancillary fees, and the increasing assertiveness of national consumer protection agencies. Spain has clearly become a battleground for this conflict. For aviation professionals, this signals a significant operational risk in a major European market, where regulatory interpretation can directly impact core revenue strategies that are widely accepted elsewhere.

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