DOT ISSUES FINAL RULE CLARIFYING ITS FORMAL ENFORCEMENT PROCEDURES FOR UNFAIR AND DECEPTIVE PRACTICES
July 2, 2023
On June 16, 2023, DOT issued a final rule to amend its regulations on the formal enforcement procedures that it may use if it takes action against an airline or ticket agent for violations related to unfair and deceptive practices, and is unable to settle the matter through a consent order. More specifically, the amendment provides that in such cases, DOT may also bring a civil action against the airline or ticket agent in a U.S. District Court, in addition to the other methods of enforcement DOT may pursue. DOT noted that previous amendments and guidance provided that DOT has the authority to regulate, investigate, and issue orders to stop unfair and deceptive practices, or issue a notice to institute an enforcement proceeding before a DOT administrative law judge when a settlement cannot be reached, but that its December 2020 “Defining Unfair or Deceptive Practices” final rule failed to also provide that it may file a complaint in a U.S. District Court when a settlement cannot be reached.
The final rule will become effective on July 17, 2023.
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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