The U.S. Department of Transportation (DOT) recently released a notice of proposed rulemaking (NPRM), titled “Airline Ticket Refunds and Consumer Protections” in which it is seeking to strengthen protections for consumers seeking refunds for airline tickets.
According to the summary, the DOT “is proposing to codify its longstanding interpretation that it is an unfair business practice for a U.S. air carrier, a foreign air carrier, or a ticket agent to refuse to provide requested refunds to consumers when a carrier has cancelled or made a significant change to a scheduled flight to, from, or within the United States, and consumers found the alternative transportation offered by the carrier or the ticket agent to be unacceptable.”
In addition, the NPRM proposed that air carriers and ticket agents provide “non-expiring travel vouchers or credits to consumers holding non-refundable tickets for scheduled flights to, from, or within the United States who are unable to travel as scheduled in certain circumstances related to a serious communicable disease.” Lastly, the regulations would require air carriers and ticket agents to “provide refunds, in lieu of non-expiring travel vouchers or credits, if the carrier or ticket agent received significant financial assistance from the government as a result of a public health emergency.”
Following the release of the draft regulations, Eben Peck, EVP of advocacy at the American Society of Travel Advisors (ASTA), said, “The package contains both enhanced consumer protections that ASTA has advocated for, as well as provisions of concern that would increase the burden on travel agencies, regardless of whether the agency handled the client's funds in the transaction.”
"At first glance, it contains several elements we supported in DOT proceedings on the rulemaking, including codifying airline changes/cancellations that trigger a refund and expanding refund rights for passengers unable to fly due to pandemic-related government travel bans. We also appreciate that the proposal would protect the ability of travel agencies to charge service and refund fees, which are charged for the agency's services and not for the flight. That said, some of the language related to agencies' responsibility to provide refunds in cases when they book air for clients but do not control the client funds directly may require enhancements."
Peck added that ASTA is reviewing the entire 115-page proposal in detail and will consult with its membership and will file comments on the proposed rulemaking. ASTA will then launch a grassroots campaign to encourage members to do the same, saying “it will be crucial for the Department to hear directly from those affected by these proposed changes, especially any problems the DOT's further ensnaring of ticket agents in the airline refund process will cause.”
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