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Biden mandates airline refunds, fee transparency
It's time Americans got a fair deal: US President Joe Biden
File picture / Toni Pomar / Unsplash
The Biden Administration has rolled out new regulations for airlines, emphasizing automatic cash refunds for canceled or significantly delayed flights. These measures aim to shield consumers from unexpected fees and ensure a smoother refund process.
President Biden highlighted the necessity of this change, stating, "It's time Americans got a fair deal." Transportation Secretary Pete Buttigieg echoed this sentiment, emphasizing the importance of airlines treating passengers better and estimated savings of over half a billion dollars for consumers.
Under the new rules, airlines must issue refunds promptly without requiring explicit requests, typically within seven business days for credit card purchases and 20 days for other payment methods. Refunds must be provided in the original payment form, such as cash, credit card, or airline miles, and cannot be substituted with vouchers or travel credits unless requested by the passenger.
Additionally, airlines are now required to disclose all fees upfront, including those for checked bags, reservation changes, and cancellations. This transparency ensures that consumers can make informed decisions without facing surprise charges.
The regulations also prohibit deceptive advertising practices by airlines, such as promoting discounts off base fares without including mandatory fees. Future rulemakings may further address issues like family seating fees and passenger compensation for flight disruptions.
These changes mark a significant step in protecting consumer rights and promoting fairness in air travel under the Biden Administration.
KEY POINTS:
- Automatic cash refunds mandated for canceled or significantly delayed flights.
- Aim to protect consumers from surprise fees.
- Refunds issued without explicit request, within specified timeframes.
- Airlines must disclose fees upfront, including baggage, reservation changes, and cancellations.
- Prohibits bait-and-switch advertising tactics by airlines.
- Future rules may include banning family seating fees and ensuring passenger compensation for flight disruptions.
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