DOT PROPOSES NEW REGULATIONS ON THE DISCLOSURE OF CUSTOMER-SPECIFIC AIRLINE BAGGAGE FEE INFORMATION
February 1, 2017
On January 19, 2017 the Department of Transportation (DOT) published a Proposed Rule on “Transparency of Airline Ancillary Service Fees” (the “2017 Proposed Rulemaking”). The comment period ends on March 20, 2017 and would require additional price-related disclosure requirements at all points of sale as it pertains to 14 C.F.R. Part 399 in order to protect consumers from hidden and deceptive fees and enable them to determine the true cost of travel in an effective manner when they price shop for air transportation. This proposed rule would apply to foreign and domestic carriers.
The current Proposed Rulemaking stems from a spring 2014 Proposed Rulemaking, “Transparency of Airline Ancillary Service Fees and Other Consumer Protection Issues” (the “2014 Proposed Rulemaking”). The 2014 Proposed Rulemaking contained a number of proposals to enhance consumer protections, including that airlines disclose certain ancillary service fees. Because the disclosure of ancillary service fees proposal garnered so many comments, DOT offers the 2017 Proposed Rulemaking to focus only on the issue of transparency of certain ancillary service fees; like the price to the consumer of checked baggage or the use of the overhead storage bins.
The concern arises out of the “unbundling” of services. Historically, various services had been included in airfare but many carriers now charge a separate fee, like a fee to check luggage, not reflected in the purchase ticket price.
The 2017 Proposed Rulemaking would require air carriers, foreign air carriers and ticket agents to clearly disclose to consumers at all points of sale customer-specific fee information, or itinerary-specific information if a customer elects not to provide customer-specific information, for a first checked bag, a second checked bag, and one carry-on bag wherever fare and schedule information is provided to consumers.
The DOT also proposes that each covered carrier provide useable, current, and accurate (but not transactable) baggage fee information to all ticket agents that receive and distribute the carrier’s fare and schedule information, including Global Distribution Systems and meta-search entities. Covered carrier and ticket agent websites would be required to disclose baggage fee information at the first point in a search process where a fare is listed in connection with a specific flight itinerary, adjacent to the fare. However, the 2017 Proposed Rulemaking would permit carriers and ticket agents to allow customers to opt-out of receiving the baggage fee information when using their websites.
The 2017 Proposed Rulemaking does not however propose to require disclosure for advance seat assignments fees or for change and cancellation fees. Comments must be filed by March 20, 2017.
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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