The Biden administration finalized rules Wednesday that will require airlines to automatically refund passengers on canceled or significantly delayed flights and pre-pay baggage sharing, change and cancellation fees.
Transportation Secretary Pete Buttigieg said in a statement: “Passengers deserve to know in advance the costs they are facing, and if airlines owe money, they should get their money back, no questions asked.” said.
“Today's announcement will require airlines to both provide passengers with better information about costs before they purchase a ticket, and to promptly refund passengers in cash if they are owed. “This will not only save passengers time and money, but also save them headaches.”
The first of two rules announced by the Department of Transportation on Wednesday says that if a flight is canceled or delayed by more than three hours for domestic flights or six hours for international flights, airlines will automatically have to pay the full amount. I have to refund it.
Airlines must also refund passengers for other significant changes to flights, such as changing departure or arrival airports, increasing the number of connecting flights, or significant delays in baggage return.
The second rule requires airlines to disclose additional fees, including fees for checked baggage, carry-on baggage, and reservation change or cancellation fees, when first providing fare and schedule information to customers. .
Airlines must also explain these fees to passengers before they make their final purchase, and this fee information must be provided to a third party.
Buttigieg added, “Airlines should be competing with each other to secure passenger business, not competing to see who can charge the most surprise fares.” “DOT's new rules will save passengers more than $500 million annually in unnecessary or unexpected charges by holding airlines accountable for being transparent with their customers.”
The crackdown on airlines is part of a larger effort by the Biden administration to rein in so-called “junk fees.”
In March, the Consumer Financial Protection Bureau (CFPB) finalized a rule capping credit card late fees at $8. That same month, the Federal Communications Commission (FCC) adopted rules requiring cable and satellite television providers to clearly display “all-in” prices.
The push for “junk fees” comes as President Biden tries to sell his economic policies to Americans ahead of the November election. But many Americans maintain a mostly negative view of the economy, even as inflation eases and the job market is booming.
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