Biden issues new rules for airlines to require automatic cash refunds, prohibit surprise fees

Biden issues new rules for airlines to require automatic cash refunds, prohibit surprise fees



If an airline cancels your flight, remember that you are entitled to a full refund.

Bunhill | E+ | Getty Images

The Biden administration unveiled two new rules Wednesday that will directly impact the millions of Americans who fly commercially each year. The first rule requires airlines to be more transparent about additional fees. The second rule requires airlines to issue cash refunds automatically and not respond to customer requests.

The various provisions of the new rules issued by the Ministry of Transport will be implemented in different time periods, ranging from six months to two years.

“Passengers deserve to get their money back when an airline owes them – without the headaches or haggling,” Transportation Secretary Pete Buttigieg said in a news release about the new refund rule.

The rule requires airlines to automatically refund passengers their full money in several cases: if flights are canceled or significantly changed, if baggage return is significantly delayed, and if customers do not receive onboard amenities such as Wi-Fi that they paid for.

The other regulation aims to eliminate so-called “surprise fees for junk email”.

“Airlines should compete to secure passenger business – not who can charge the most surprise fees,” Buttigieg said.

It requires airlines to list and explain all additional charges “clearly, conspicuously and accurately” on their web platforms or when providing airfares offline.

This junk fee transparency rule also includes a provision to eliminate “discount bait-and-switch tactics,” the practice of offering discounts that appear to apply to the entire fare, but in reality only apply to a smaller portion of the price apply.

Wednesday’s announcements from the White House come on the heels of several airline incidents involving malfunctions on Boeing planes that have led to regulatory investigations and forced major airlines such as Southwest, Alaska Airlines and United to reassess their business expectations.

Last week, Buttigieg said the White House would work with prosecutors to speed up the response to customer complaints against airlines and ticket agencies. Technically, only the federal government has the authority to enforce passenger protections, although prosecutors receive many reports of customer complaints.

Along with the final rules announced Wednesday, the White House is also proposing rules to ban additional seating fees for parents trying to sit next to their children, make certain amenities mandatory and expand accommodation options for passengers who use wheelchairs.

The new rules for airlines are the latest measure in President Joe Biden’s broader fight against what the White House calls “corporate fraud.”

“There are tens of billions of dollars in other junk fees throughout the economy, and I have directed my administration to reduce or eliminate them,” Biden said in 2022.

This policy has led to a comprehensive crackdown on hidden fees from various government agencies targeting various sectors, including banking, cable television and financial products such as retirement accounts.



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2024-04-24 10:00:01

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