« Passengers are entitled to their money back when an airline owes them without the hassle or bargaining, » Transportation Secretary Pete Buttigieg said in a press release about the new refund rule.
The rule mandates that airlines automatically refund passengers in full in several cases: when flights are canceled or significantly changed, when baggage returns are significantly delayed and when customers don't receive the inflight amenities they paid for, such as Wi-Fi.
The other rule aims to eliminate so-called « surprise garbage fees. »
« Airlines should compete with each other to secure the business of passengers — not see who can charge the most with surprise fares, » Buttigieg said.
Airlines must list and explain all surcharges « clearly, legibly and accurately » when offering fares on their websites or offline.
This junk fare transparency rule also includes a provision to eliminate « discount bait and switch tactics, » the practice of offering discounts that apply to the entire airfare but actually only apply to a small portion of the price.
Wednesday's announcements from the White House come after several aviation incidents involving Boeing jet malfunctions that have prompted regulatory probes and forced major carriers such as Southwest, Alaska Airlines and United to reevaluate their business expectations.
Last week, BoutiqueGeek said the White House would partner with state prosecutors to speed up responses to customer complaints against airlines and ticket agencies. Technically, though state prosecutors receive many reports of customer complaints, the federal government alone has the authority to enforce passenger safety.
With final rules announced Wednesday, the White House is proposing rules to ban extra seat fees for parents who try to sit next to their children, mandate certain amenities and expand accommodations for passengers who use wheelchairs.
The new aviation rules are the latest move in President Joe Biden's broader war against what the White House calls « corporate rip-offs. »
« There are tens of billions of dollars in other junk taxes throughout the economy that I have directed my administration to reduce or eliminate, » Biden said in 2022.
The order has become a multifaceted crackdown on hidden fees from various government agencies, targeting various sectors, including financial products such as banking, cable and retirement savings accounts.
