DOT 2019 REGULATORY AGENDA
March 4, 2019
The Trump Administration’s recently published Unified Regulatory Agenda contains several notable regulatory initiatives to be pursued by the Department in 2019. While certain regulatory initiatives are behind their proposed schedule, they remain on the Department’s agenda, with delays likely resulting from the recent government shutdown. For example, a rule on Modernizing Payment of Denied Boarding Compensation (DBC), which would allow electronic delivery of DBC notices and payment using stored value cards, was scheduled for October 2018 but has yet to be released. A rule to Modify Carrier Responses to Consumer Complaints (General and Disability), which would increase the 30-day time limit airlines have to respond to disability related complaints and eliminate the requirement that carriers acknowledge receipt of written complaints, had been scheduled for publication in January 2019. A rule on Streamlining Customer Service Commitments that would eliminate carriers’ requirement to self-audit compliance with customer service plans was scheduled to be published in the Federal Register in February 2019.
The Department also plans to issue a regulation in March 2019 clarifying the meaning of “unfair and deceptive practices” and will be seeking public input. It will follow Federal Trade Commission policy statements, generally defining a practice as “unfair” if it causes or is likely to cause substantial harm, the harm cannot reasonably be avoided, and the harm is not outweighed by any countervailing benefits to consumers or to competition. A practice will generally be found “deceptive” if it misleads or is likely to mislead a reasonable consumer with respect to an issue that affects their choice.
In addition to the above regulatory agenda items, below are a few of the “Customer Service Improvements” mandated by the FAA Reauthorization Act of 2018 (signed into law by President Trump on October 5, 2018) that may be implemented in 2019.
- DOT shall conduct a rulemaking proceeding to define the term “service animal” for purposes of air transportation and to develop minimum standards for the in-cabin carriage of service animals and emotional support animals (ESAs). DOT will issue a final rule on these topics within 18 months of the bill being signed into law (April 5, 2020). A notice of proposed rulemaking is expected to be issued in March.
- Within one-year (by October 5, 2019), DOT will promulgate regulations that require covered air carriers to promptly provide refunds to passengers of any ancillary fees paid for services related to air travel that they did not receive, including on a scheduled flight, on a subsequent replacement itinerary if there has been a rescheduling, or for a flight not taken by the passenger.
- Within 180 days of the bill being signed into law (by April 3, 2019) DOT will issue a Final Rule that requires large ticket agents to adopt certain minimum customer service standards. To the extent feasible, new rules will require large ticket agents (those with at least $100 million in annual revenue) to comply with customer service and disclosure requirements consistent with responsibilities placed upon covered air carriers.
Whether these initiatives will be similarly delayed remains to be seen. If you have questions about upcoming or existing regulatory initiatives, please contact us.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com or 202-659-6622); Drew Derco (dderco@eckertseamans.com or 202-659-6665), or Alexander Matthews (amatthews@eckertseamans.com or 202-659-6633).
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