Last month, the Clear "registered traveler" program that operated with the blessing of the US government abruptly closed. About 200,000 people discovered passes they'd purchased were now worthless. No refunds would be given. A class action lawsuit has been filed. But forget the money. Will anyone consider a fraud action against the company's executives and perhaps against competing "registered traveler" company Flo? And should someone hold the Transportation Security Agency accountable for the mess?
Registered Traveler was a program operated through the TSA that was originally intended to allow people to skip past airport security. By giving up your fingerprints, retina IDs and being subjected to a TSA background check -- plus paying some cash -- your registered status would mean bypassing the usual airport screening.
TSA created the rules for Registered Traveler and then left it to private companies to operate within its guidelines. However, the rules never allowed for actually getting past security, in the end. Instead, Registered Traveler turned into a glorified "cut in front of the line" system. It was a way for frequent travelers to jump ahead of everyone else in line, but it still subjected them to the same screening.
Clear was the biggest company operating under the Registered Traveler program, allowing people to jump ahead in security lines at about 20 airports. When the company went under last month, there were plenty of people shedding no tears for those who'd lost money on the cards they purchased. After all, if those "smug" folks cutting in line were "dumb" enough to enroll in a private program like Clear, they deserved to lose their money -- or so some of the commentary has gone.
Well, airports benefited from the program. Orlando earned nearly $1 million this year alone, according to USA Today. In turn, that should have helped all travelers. But let's set aside the potential sniping between the "haves" and "have-nots" in the airport security line and focus on the bigger issue. With an administration that's trying to crack down on corporate abuses, such as misleading credit terms -- shouldn't someone consider punishing those at Clear for pushing a consumer product that seemed to have TSA backing when it had to be known the company was about to collapse?
When exactly did Clear realize it was in serious danger of closing? At that time, did it have any obligation to cease operations earlier, in order to issue refunds to those who'd purchased cards? Was the company acting prudently in continuing to sell passes with lengths of up to 10 years? Should it have still been selling cards on the day it closed?
Meanwhile, another Registered Traveler company -- Flo -- continued to sell its own passes, still making it seem on its site at the time I write this that its card are accepted at more than 20 airports nationwide. In reality, there are only three "Registered Traveler" locations left. Two are operated by Preferred Traveler, and one of the Preferred Traveler lanes may have just closed today at Jacksonville, following the Jacksonville Aviation Authority asking the Florida attorney general to investigate customer complaints.
Where's the TSA in all this? Acting like it has nothing to do with the mess. At first, the TSA said nothing to the public. After a week, it finally got public statement out on its site and blog, mainly to act like it wasn't connected with the meltdown.
All that biometric data that Clear was collecting? The TSA says it didn't receive any of it after the "pilot" program ended in July 2008. And yet, you get the impression that companies operating under the Registered Traveler mandate were still required to collect it. Sure, the TSA announced last July it would no longer charge its own $28 fee to do screening. But in the same release, it said that those within the Registered Traveler system would still need to verify member identities and that there was "promise" in a "biometrically enhanced" Registered Traveler system.
If the change last year simply transformed Registered Traveler into a skip-to-the-front service, why were all the biometrics necessary? Why not just have a picture ID check as currently happens? And why didn't the TSA say all the biometrics weren't needed?
And the status of the Registered Traveler program? Hit the TSA's FAQ, and you're told:
Q. What is the status of the RT program now?
A. The program is a market-driven venture offered by the private sector in partnership with airports and airlines.
Don't consumers deserve better than this? Shouldn't they at least be told that the Registered Traveler program has lanes in only three remaining locations?
Or on the TSA blog:
Will Clear members be able to transfer memberships to other service providers?
That decision is between CLEAR, the other service provider, and the card holder.
That sidesteps the issue that the TSA has required that each provider honor each other's cards for a set period. So yes, Clear members should find the other two Registered Traveler providers have to honor their cards -- at least if they also don't go out of business.
Some lawmakers are seeking answers over the privacy of data that the TSA collected via Clear, in the wake of its closure. I'm hoping they go beyond this and seek answers into how the entire meltdown was allowed to happen.
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