RECAP: DOT ACPAC MEETING ON TRANSPARENCY OF AIRLINE ANCILLARY FEES AND AIRLINE TICKET REFUNDS NPRMs
January 11, 2023
On December 8th and 9th, DOT’s Aviation Consumer Protection Advisory Committee (“ACPAC”) held public meetings to discuss DOT’s proposed rulemakings on “Enhancing Transparency of Airline Ancillary Service Fees” and “Airline Ticket Refunds and Consumer Protections”, as well as other related topics. The comment period on the transparency of ancillary fees rulemaking has been extended to January 23, 2023 (as detailed above). The comment period for the refunds rulemaking closed on December 16, 2022.
On the first day, ACPAC reviewed the various components of the ancillary service fees NPRM through DOT led presentations on the rule. This included an overview of proposed rule provisions on the disclosure of baggage fees (including specifically online disclosures versus offline disclosures of baggage fees), the disclosure of change and cancellation fees, and the disclosure and transactability of family seating fees. The ACPAC then generally discussed a number of issues including whether the rulemaking will address challenges that consumers may face regarding finding and understanding ancillary fees when searching for flights and services through newer technologies like mobile applications, and the proposed rulemaking’s requirements regarding the display of certain content such as change fees, seating guardians next to children, etc. Members of the ACPAC and the general public were also given an opportunity to make further comments on the rulemaking and ask questions. Some comments included a statement that the rulemaking is a “step in the right direction”, and a reiteration that the proposed implementation deadline for compliance (i.e., 6 months from the enactment of a final rule) may not be adequate to give airlines and tickets enough time to come into full compliance. There were also several comments given on behalf of airline groups, including (1) an indication that the cost and time to implement the requirements of the proposed rule that would require airlines and related ticket-selling websites to provide specific information to consumers on an itinerary or carrier specific basis, and based on a consumer’s frequent flyer status if they provide identifying information, would outweigh the potential time saved for the consumer (i.e., the cost and time to implement the changes aren’t worth the small amount of time savings the consumer will reap), and (2) that the rulemaking could present an added burden and cause more confusion for consumers since it would require more, highly-detailed information to be added and broken down on the first search page for flight fares.
On the second day, ACPAC discussed the proposed rulemaking on ticket refunds, beginning again with an overview of the NPRM and issues/comments raised during the previous August 2022 ACPAC meeting on the rulemaking. After general discussion, the ACPAC deliberated and made several committee recommendations to eventually be voted on and submitted to DOT as ACPAC’s official recommendations. Some of the recommendations included (1) that the ACPAC support DOT’s proposed definitions for “Cancelled flight” and “Significant change”, and that significant changes be defined as 3 hours for domestic flights and 4 hours for international flights, (2) that DOT clarify its proposal on “Medical Professionals” by changing this term to have the same definition as “Treating Physician” as defined under Michigan state law, (3) that the ACPAC support DOT’s proposal regarding non-expiring travel credits and vouchers that are provided in situations where people are not able to travel due to a communicable disease, (4) that DOT look into the possibility of providing passenger education to better explain the true cause of delays and cancellations (e.g., weather disturbances when there do not appear to be weather issues at a passenger’s arrival or departure airport location), and (5) that DOT look into issuing regulations to require airlines to notify affected consumers of services and amenities that are available in the event of a controllable delay or cancellation.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com 202-659-6622) or Drew Derco (dderco@eckertseamans.com 202-659-6665).
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