The U.S. Court of Appeals for the 5th Circuit has put on hold a new Department of Transportation (DOT) rule designed to protect consumers from so-called “junk fees” that are added to the end of airline ticket transactions and other purchases.
The rules, announced in April 2024, will require airlines and ticket agents to tell consumers up front what fees they will charge for a first or second checked bag, carry-on bags, or canceling or changing a reservation. “This will help consumers avoid unnecessary and unexpected fees that can quickly add up and significantly increase the cost of what may seem like a cheap flight,” the DOT said.
According to the DOT, “This final rule is expected to save consumers more than $500 million annually that they currently overpay in hidden airfare fees.”
Exposing junk fees would “cause irreparable harm to airlines”
But a three-judge panel of the New Orleans-based appeals court ruled that the restrictions “likely exceeded the agency’s authority” and would cause irreparable harm to airlines, The Associated Press reported on July 30.
The court granted airlines that had challenged the rule a temporary stay on enforcement of the rule while their appeals were heard.
With the industry group Airlines for America American Airlines, Delta Airlines and United Airlines, The company is trying to block the new regulations, arguing that carriers already properly disclose rates and that the new rules would confuse consumers.
The DOT rules are “unreasonable for an industry notorious for skimming pennies off families to line its executive paychecks and bonuses,” said Caroline Ciccone, president of consumer advocacy group Accountable.US. “But the big airlines believe that greater transparency about what they’re actually charging Americans is an affront to their profits, and so they went to the right-leaning 5th Circuit Court of Appeals for relief. Predictably, a jurisdiction popular with greedy corporations was more than happy to give the airlines what they wanted, at the expense of everyday consumers.”
Transportation Department officials said they would appeal the ruling.
This post appeared on Prevue’s sister site. Recommended.com.
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