U.S. Department of Transportation’s Expanded Airline Passenger Protections Take Effect
The U.S. Department of Transportation has set forth additional consumer protections for airline passengers, aptly named: Enhancing Airline Passenger Protections Final Rule. Effective January 24 (for everything except the fare advertising rules) and January 26 (for the fare advertising rules), the consumer protections include revised fare advertising rules, baggage fee allowances, post-purchase price increases, flight status changes, and holding a reservation without payment for twenty-four hours.
“Airline passengers have rights, and they should be able to expect fair and reasonable treatment when booking a trip and when they fly,” U.S. Transportation Secretary Ray LaHood said in a statement released Monday, January 23. Secretary LaHood went on to say, “The new passenger protections taking effect this week are a continuation of our effort to help air travelers receive the respect they deserve.”
Following is a brief summary of the new protections:
Advertised Fares:
When a travel agency advertises, it will be required to display and/or state the full, all inclusive price to be paid by the consumer, including all taxes, surcharges, and fees. Taxes, surcharges, and fees cannot be listed separately from the fare charged by the airline. Travel agencies are also precluded from including optional products, such as travel insurance, in price presented to customers when selling airfare or packages containing air segments. Further, travel agents are prohibited from using the term “one-way” when advertising airfares if roundtrip travel is required. Additionally, agents can only use the term, “each-way” – when roundtrip is required – if disclosure of the roundtrip purchase agreement is “clearly and conspicuously” noted in the advertisement.
Post Purchase Increases:
More notably, there is a strict ban on post purchase increases. Once full payment is made, an airline is not allowed to increase its mandatory fees, such as a fuel surcharge, or its bag fees. Moreover, the travel agency/or airline is prohibited from passing on allowable price increases unless the customer’s written consent is obtained. An example of a consent agreement is illustrated here:
Sample Consent Agreement:
I understand that the airline tickets or air tours I am purchasing are subject to supplemental price increases that may be imposed after the date of purchase. Post-purchase price increases may be applied due to additional costs imposed by a supplier or government. I acknowledge that I am to be charged additional sums by (your travel agency name here) to offset increased fees, fuel surcharges, taxes, fluctuations in foreign exchange markets or any combination thereof. I hereby consent to any post –purchase price increases and authorize (your travel agency name) to charge my credit card for such additional amounts.
Baggage Fees:
With respect to baggage fees, if the agency operates an online consumer-booking tool, it must inform customers on the first fare quotation screen that additional fees for bags may apply and where the customers can go to see these fees.
When purchasing e-tickets, the agency must include: – (1) the specific allowances and baggage fees for carry-on, and for first and second checked bags; or, (2) a direct link to the applicable airline’s baggage allowance and fee information; or, (3) a direct link to a page on the agency’s website where the applicable airline’s baggage allowance and fee information is maintained. In addition, the baggage allowances/fees that apply at the beginning of a passenger’s itinerary must apply throughout the entire journey.
Reservations:
The airlines must allow a reservation to either be held at the quoted fare without payment, or cancelled after purchase without penalty, for at least 24 hours after the reservation is made.
The Final Rule can be found in its entirety: http://airconsumer.ost.dot.gov/rules/Consumer2%20-%20Federal%20Register.pdf