The US administration has reportedly introduced new regulations requiring airlines to offer automatic cash refunds to passengers owed money and safeguard consumers from unexpected, costly fees.
The fresh regulations mandate airlines to automatically reimburse passengers without requiring explicit requests or complex procedures. Airlines and ticket agents are obliged to promptly issue refunds within seven business days for credit card transactions and within 20 calendar days for other payment methods.
The Biden administration is holding airlines accountable, aiming to reduce expenses for American families. President Joe Biden stated, “It is time Americans received better treatment from airlines, including automatic refunds and protection from surprise fees.”
Transportation Secretary Pete Buttigieg highlighted, “This initiative aims to improve passenger treatment by airlines and save individuals over half a billion dollars by eliminating unnecessary surprise fees.”
The White House emphasized that these regulations will significantly enhance consumer protections in air travel, making it easier for passengers to obtain refunds and saving them over half a billion dollars annually in hidden fees.
Under the new rules, airlines must provide refunds in the original payment method used by the passenger and are prohibited from substituting vouchers or travel credits without the passenger’s consent.
The Department of Transportation mandates airlines to disclose upfront all fees for services like checked bags and reservation changes, ensuring consumers can make informed decisions.
Airlines must also clearly outline baggage restrictions and policies regarding flight changes or cancellations. Additionally, they cannot engage in bait-and-switch tactics by advertising misleadingly low fares.
The Biden administration plans further regulations to ban family-seating fees and ensure compensation and amenities for passengers affected by flight delays or cancellations.
