USTOA COMMENTS ON TRANSPARENCY OF AIRLINE ANCILLARY FEES AND OTHER CONSUMER PROTECTION ISSUES
July 12, 2017
On May 31, 2017, the United States Tour Operators Association (USTOA) wrote to Secretary of Transportation Elaine Chao in regards to the imposition of additional customer service standards on air transportation ticket agents via the Department’s Air Transportation Consumer Protect Requirements for Ticket Agents (Consumer Rule IV) rulemaking.
This rule, if promulgated, would require large ticket agents to adopt and adhere to intrusive minimum customer service standards governing the timing of ticket refunds; the holding/cancellation of reservation within 24 hours of booking; the disclosure of carrier cancellation policies, aircraft seating configurations and lavatory availability; the timing for communicating carrier-initiated itinerary changes; and the handling of customer complaints.
In its letter, USTOA argues that Consumer Rule IV would, among other things, impose “complex and, ultimately, unnecessary, customer service standards on ‘large ticket agents’ selling air transportation, notwithstanding the fact that ticket agents consistently have accounted for an exceedingly small fraction of consumer complaints to the Department.” The letter also notes that Consumer Rule IV is based on an outdated regulatory analysis which uses data that is between six and ten years old. USTOA also notes that even though ticket agents sell almost half of all airline tickets, they account for a small share of the written complaints received by DOT. For example, the letter notes that in 2016, DOT received 17,904 consumer complaints, of which only 362 (2.0%) involved ticket agents. And the average for 2014 and 2015 was 1.8%.
USTOA argues that the record for Consumer Rule IV does not indicate a deficiency among ticket agents that would warrant such “extraordinarily intrusive regulatory expansion” which could stifle newer approaches developed by retail seller of air transportation for the handling of customer service issues. The letter urges the Department not to impose standards for dictating ticket agent customer service levels. Specifically, that that mandatory ticket agent customer service standards are unwarranted and that any required standards would require large ticket agents to “adhere to intrusive minimum customer service standards”. However, USTOA writes that if DOT decides to proceed with Consumer Rule IV then the DOT ought to conduct a Regulatory Impact Analysis and re-open the public comment period to take a “fresh look” at the need for regulation of ticket agents.
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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