DOT PUBLISHES TWO NEW RULEMAKINGS IN FEDERAL REGISTER; EFFECTIVE DATES BELOW
May 2, 2024
To follow up on our client alert from April 25, 2024, DOT recently published both the Refunds and Other Consumer Protections (“Refund Rule”) and the Enhancing Transparency of Airline Ancillary Service Fees (“Ancillary Service Fee Rule“) final rules in the Federal Register. These are significant rulemakings that will require action on carriers’ behalf to become compliant. We would encourage you to closely review our prior client alert, which provided a general overview of each rule’s requirements.
Among other provisions, the Refund Rule will require airlines to issue automatic refunds to the original form of payment when they cancel or make a significant change to a scheduled flight, provided the consumer is not offered (or rejects) alternative transportation, travel credits, vouchers, or other compensation. Airlines and ticket agents will be required to provide these refunds promptly and inform consumers of their right to a refund before making an offer for alternative transportation, travel credits, vouchers, or other compensation in lieu of a refund. The rule also allows passengers who are unable or advised not to travel due to a communicable disease to obtain a transferrable voucher or credit valid for five years. The rule becomes effective June 25, 2024.
The goal of DOT’s Ancillary Service Fee Rule is to ensure consumers are fully informed of the fees carriers charge for transporting a first checked bag, a second checked bag, and a carry-on bag, and for canceling or changing a reservation. Under the final rule, among other things, airlines and ticket agents will be required to clearly disclose passenger-specific or itinerary-specific fees (i.e., actual charges and not ranges) for these services to consumers whenever fare and schedule information is provided on a website, mobile app, or other marketing platform, including sales made by telephone. Covered entities will also have to provide useable, current, and accurate information regarding fees for these critical ancillary services to any entity that is required to disclose critical ancillary service fee information to consumers, such as third-party ticket agents. The rule becomes effective July 1, 2024.
If you have any questions, please contact Evelyn Sahr at 202.659.6622 or esahr@eckertseamans.com; Drew Derco at 202-659-6665 or dderco@eckertseamans.com; Jay Julien at 202.659.6648 or jjulien@eckertseamans.com, or any other attorney at Eckert Seamans with whom you have been working.
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