Top Airlines Take Biden Administration To Court Over Junk Fees Disclosure Rule
KEY POINTS
- USDOT said last month that the rule should unmask tickets that look cheap at first sight
- A4A and major airlines said the disclosure rule would only bring further confusion to consumers
- Some X users slammed the airlines for not wanting to be transparent about their ticket prices
Several top airlines have filed a lawsuit against the U.S. Department of Transportation (USDOT) after the finalization of a fee disclosure rule in April that requires airlines to disclose extra fees to passengers before they purchase ticket.
Trade group Airlines for America (A4A), JetBlue Airways Corp., Delta Air Lines, Alaska Airlines, United Airlines, Hawaiian Airlines and American Airlines filed the lawsuit in the U.S. Fifth Circuit Court of Appeals in Louisiana late last week, as per a copy of the complaint seen by Reuters.
The USDOT said when it issued the final disclosure rule that the rule should "strengthen protections for consumers by ensuring that they have access to fee information for transporting baggage and changing or canceling a flight before ticket purchase."
The department also said airlines imposed separate fees for ancillary services that are "beyond" passenger air transportation for many years. It said consumers should know the fees behind what first appears to "look like a cheap ticket."
The final rule states that airlines are barred from providing fee information through a hyperlink. Instead, the fees should be displayed through pop-ups, expandable text, and other similar means to ensure that consumers are well-informed. "The information disclosed must be accurate, clear, and conspicuous," the USDOT said.
In a statement Monday, A4A said the rule will only bring confusion to passengers and the department's "attempt to regulate private business operations in a thriving marketplace is beyond its authority."
However, the USDOT said that it will "vigorously defend" its rule that only seeks to protect the flying public from "hidden junk fees" and its mission of ensuring that customers can see the "full price" of a flight before buying a ticket.
Some consumers have expressed their thoughts about the lawsuit on X (formerly Twitter). One said the lawsuit only indicated that the airlines don't want their customers "to have transparent pricing," and another said the airlines were "whining" because now they have lost a means to "scam" consumers with hidden fees.
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