In a move that has sparked controversy, US airlines are taking legal action to block a new rule aimed at promoting transparency over fees charged to passengers.
The Biden administration’s proposal, announced on April 24, seeks to require airlines and travel agents to disclose upfront any additional charges for baggage, canceling, or changing a reservation.
However, the airlines argue that this move would overwhelm consumers with too much information, leading to confusion during the ticket-buying process.
The US Transportation Department, on the other hand, is adamant that the rule is necessary to protect consumers from “hidden junk fees” and ensure they have a clear understanding of the total cost of a flight before making a purchase. According to the department, the rule would save consumers over $500 million annually.
Airlines Resist New Rule Aimed at Curbing Hidden Fees
The airlines, however, claim that the administration is overstepping its authority by attempting to regulate their business operations, and that they already provide adequate information about fees to their customers.
The lawsuit, filed in a federal appeals court, pits the airlines and their industry trade group, Airlines for America, against the Transportation Department. The airlines argue that the rule would complicate the buying process and that consumers can already access information about fees if they wish.
The Transportation Department, however, remains committed to defending the rule, which it believes is essential for protecting consumers from unfair and deceptive practices.
As the legal battle unfolds, it remains to be seen whether the airlines will succeed in blocking the rule or if the administration will prevail in its efforts to promote transparency and consumer protection.
