DOT NOTICE OF PROPOSED RULEMAKING REGARDING THE DEFINITION OF “UNFAIR OR DECEPTIVE PRACTICES”
December 7, 2018
On March 11, 2019, DOT will publish a Notice of Proposed Rulemaking regarding the definition of the phrase “unfair or deceptive practice” in the Department’s aviation consumer protection statute. The public comment period will close on May 10, 2019.
The Department noted that its aviation consumer protection statute is modeled after a similar statute granting the U.S. Federal Trade Commission (FTC) the authority to regulate unfair or deceptive practices. Based on the FTC’s policy statements, DOT currently finds a practice to be “unfair” if it “causes or is likely to cause substantial harm, the harm cannot reasonably be avoided, and the harm is not outweighed by any countervailing benefits to consumers or to competition.” To date, DOT has also deemed a practice “deceptive” if it “misleads or is likely to mislead a consumer acting reasonably under the circumstances with respect to a material issue (one that is likely to affect the consumer’s decision with regard to a product or service)”
This rulemaking would codify DOT’s current interpretation of the phrase “unfair or deceptive practice” and solicit public comment on whether any changes are needed. The Department noted that the rulemaking is not expected to impose monetary costs, and will benefit regulated entities by providing a clearer understanding of DOT’s interpretation of the statute.
Please contact us if you would like assistance with submitting comments when the public comment period opens on March 11, 2019.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com or 202-659-6622); Drew Derco (dderco@eckertseamans.com or 202-659-6665), or Alexander Matthews (amatthews@eckertseamans.com or 202-659-6633).
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