Biden’s New Airline Rules Focus on Transparency

The Biden administration has introduced new rules affecting commercial airlines in the U.S., targeting transparency around extra fees and ensuring automatic cash refunds in specific situations. These changes are part of Biden’s broader efforts to protect consumers from corporate fees.

The Department of Transportation has issued two main rules. The first rule mandates airlines to be clear about additional fees, making it mandatory for them to list and explain these charges prominently on their platforms or when providing fare details offline. This rule also aims to end “discount bait-and-switch tactics,” where airlines offer seemingly broad discounts that apply to only a portion of the total price.

The second rule focuses on automatic cash refunds. Airlines are now required to refund passengers without obligating them to request it in cases such as flight cancellations, significant flight changes, substantial baggage return delays, or when customers don’t receive amenities like Wi-Fi that they paid for.

According to the DOT, “Without this rule, consumers have to navigate a patchwork of cumbersome processes to request and receive a refund — searching through airline websites to figure out how [to] make the request, filling out extra “digital paperwork,” or at times waiting for hours on the phone.”

These rules will be rolled out gradually over the next six months to two years. The administration emphasizes that passengers shouldn’t have to negotiate or face difficulties in getting their money back when airlines owe them.

These changes come in response to previous incidents where airlines failed to provide refunds, resulting in multimillion-dollar penalties imposed by the DOT’s consumer protection team. The administration hopes these rules will build confidence in air travel, particularly after recent incidents involving Boeing plane malfunctions and the resulting regulatory scrutiny.

Additionally, the White House is considering further rules, including banning extra fees for parents wanting to sit next to their children and expanding accommodations for passengers using wheelchairs. These measures are part of Biden’s broader initiative against what the administration describes as “corporate rip-offs,” aiming to reduce or eliminate hidden fees across various sectors.