According to Forbes, American travelers are overcharged by airlines in the tune of over half a billion dollars for “junk fees.” At the same time, they can’t get their money back on a ticket for a canceled flight without jumping through hoops online or waiting for hours on the phone.
President Biden is doing something about this.
The Biden-Harris Administration announced final rules that require airlines to provide automatic cash refunds to passengers when owed and protect consumers from costly surprise airline fees. These rules will significantly expand consumer protections in air travel, provide passengers an easier pathway to refunds when owed, and save consumers over half a billion dollars every year in hidden and surprise junk fees.
The rules are part of the Biden-Harris Administration’s work to lower costs for consumers and take on corporate ripoffs.
So what are the new rules exactly?
The first rule requires airlines to promptly give passengers automatic cash refunds when owed because their flights are cancelled or significantly changed, their checked bags are significantly delayed, or the ancillary services, like Wi-Fi, they bought are not provided.
Secondly, DOT is requiring airlines and ticket agents to tell consumers upfront what fees they charge for checked bags, a carry-on bag, for changing a reservation, or cancelling a reservation. This ensures that consumers can avoid surprise fees when they purchase tickets from airlines or ticket agents, including both brick-and-mortar travel agencies and online travel agencies.
Transportation Secretary Pete Buttigieg talked to MSNBC’s “Morning Joe” about this, as reported by Forbes. He pointed out that that first rule is a major change from the status quo:
It sounds technical, but the fact that by default, without having to ask, you will automatically get money back on whatever form of payment you used to buy the ticket in the first place, if you have a cancellation or a significant delay—that’s actually a big difference from what happens now.
Up until now, even though technically you’re already supposed to be able to get your money back for a cancellation, you have to really fight for it. Airlines will often offer mileage points instead of a refund. That might sound great if you’re not aware that that 5,000 miles is worth, I don't know, 50 bucks, and you’re actually entitled to 400 bucks in a ticket refund.
Secretary Pete also explained that the second rule change will actually make the free market work better:
Airlines really developed this business model, especially over the last 10 or 20 years, where there are all kinds of little charges—and the worst thing is when it’s a surprise charge.
The whole idea of of capitalism is that as a consumer, you're supposed to be able to to comparison shop. But if you don't know the difference between the different things you're buying, if it's not obvious what the upcharges will be for bags, changing or canceling a flight, or picking a seat — then it’s not a free and fair marketplace. So this rule speaks to all of those things. We think it's going to make a big difference.
A discussion by Vox places the new rules in their larger context.
This proposal is just the latest consumer protection policy from the Biden administration and part of the White House’s broader efforts to burnish these credentials ahead of the 2024 election this fall. The White House has had legislative success, including the passage of bills that lower prescription drug prices and make substantial investments in infrastructure. But communicating those wins can be tough because many of these proposals will take years to implement and be felt.
The airline refund rule, which will go into effect in October, offers an immediate example of how the administration is trying to address a commonly expressed grievance. It also comes as negative sentiment has grown toward the airline industry in the wake of a shocking Boeing plane incident in January and subsequent scrutiny of industry-wide quality control issues. All told, delays and cancellations have cost airlines $8.3 billion and consumers $16.7 billion on an annual basis.
Is there still more work to be done? 100%! Lots more work. But Biden has done so much more than many people guessed could be done. He deserves a lot of credit. AND he deserves to be re-elected.
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These posts are written by Goodnewsroundup (Goodie),
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