DOT ISSUES ENFORCEMENT ORDER AGAINST BRITISH AIRWAYS FOR FAILURE TO PROVIDE TIMELY REFUNDS
July 20, 2023
On June 1, 2023, DOT issued a Consent Order against British Airways for violations related to the airline’s alleged failure to provide timely refunds to passengers for flights to/from the U.S. that were cancelled or significantly changed.
DOT found that between March and November of 2020, British Airways’ website instructed consumers to contact the carrier via phone “to discuss refund options” in instances where flights were cancelled or significantly delayed, but that consumers were largely unable to get through to speak with customer service agents during this time period because British Airways “failed to maintain adequate functionality of its customer service phone lines.” DOT also noted that aside from calling to speak to a customer service agent, British Airways provided no alternate means for consumers to submit refund requests online through its website, and that British Airways had allegedly misled consumers by including information on its website causing them to inadvertently request travel vouchers instead of refunds. In total, DOT estimated that it and British Airways had each received “thousands” of complaints related to the carrier’s alleged failure to provide timely refunds. In response, British Airways asserted that the complaints it received should be considered in the context of the “unprecedented global health pandemic and the resulting astronomical number of flight cancellations” that it faced, and that despite high consumer demand and it being forced to close two of its five call centers due to the pandemic, it still worked to try to refund passengers as quickly as possible. Nevertheless, DOT decided that enforcement action was warranted, and issued a civil penalty of $1,100,000 against the airline along with an order to cease and desist from future violations.
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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