Rule2024-17602
Refunds and Other Consumer Protections (2024 FAA Reauthorization)
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 12, 2024
Effective
August 12, 2024
Issuing agencies
Transportation Department
Abstract
The U.S. Department of Transportation (Department or DOT) published a final rule on April 26, 2024, to establish requirements for refunds and other protections for consumers of air travel. Subsequent to publication of that final rule, the FAA Reauthorization Act of 2024 (Act) was signed into law on May 16, 2024. This final rule amends the Department's regulations, as updated by the April 26, 2024, final rule, consistent with the requirements of the Act.
Full Text
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<title>Federal Register, Volume 89 Issue 155 (Monday, August 12, 2024)</title>
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[Federal Register Volume 89, Number 155 (Monday, August 12, 2024)]
[Rules and Regulations]
[Pages 65534-65538]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-17602]
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DEPARTMENT OF TRANSPORTATION
Office of the Secretary
14 CFR Parts 259, 260, and 399
[Docket No. DOT-OST-2022-0089]
RIN 2105-AF04
Refunds and Other Consumer Protections (2024 FAA Reauthorization)
AGENCY: Office of the Secretary (OST), Department of Transportation.
ACTION: Final rule.
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SUMMARY: The U.S. Department of Transportation (Department or DOT)
published a final rule on April 26, 2024, to establish requirements for
refunds and other protections for consumers of air travel. Subsequent
to publication of that final rule, the FAA Reauthorization Act of 2024
(Act) was signed into law on May 16, 2024. This final rule amends the
Department's regulations, as updated by the April 26, 2024, final rule,
consistent with the requirements of the Act.
DATES: This rule is effective August 12, 2024.
FOR FURTHER INFORMATION CONTACT: Clereece Kroha or Blane Workie, Office
of Aviation Consumer Protection, U.S. Department of Transportation,
1200 New Jersey Ave. SE, Washington, DC 20590, 202-366-9342 (phone),
<a href="/cdn-cgi/l/email-protection#1a79767f687f7f797f34716875727b5a7e756e347d756c"><span class="__cf_email__" data-cfemail="6d0e01081f08080e0843061f02050c2d090219430a021b">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#197b7578777c376e766b72707c597d766d377e766f"><span class="__cf_email__" data-cfemail="056769646b602b726a776e6c6045616a712b626a73">[email protected]</span></a> (email).
SUPPLEMENTARY INFORMATION:
Executive Summary
I. Purpose of the Regulatory Action
The purpose of this final rule is to amend the Department's
regulations for consistency with the Act, Public Law 118-63.
II. Background
The Act was signed into law on May 16, 2024, after publication in
the Federal Register of the Department's final rule titled ``Refunds
and Other Consumer Protection.'' Section 503 of the Act, which is
codified at 49 U.S.C. 42305, addresses refunds for cancelled or
significantly delayed or changed flights. The requirements in Section
503 concern several topics addressed in the Department's final rule.
Subsection (a) of section 42305 requires that, for passengers \1\
that hold a nonrefundable ticket on a scheduled flight to, from, or
within the United States, an air carrier or foreign air carrier provide
a full refund of the fare (including any taxes and ancillary fees) the
carrier collected for any cancelled or significantly delayed or changed
flight if the passenger chooses not to fly on the significantly delayed
or changed flight or accept rebooking on an alternative flight or
accept any voucher, credit, or other form of compensation offered by
the air carrier or foreign air carrier pursuant to subsection (c) of
section 42305. The obligation for carriers to provide a refund is upon
request as specified in subsection (f) of section 42305.
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\1\ Note that the regulatory text uses the term ``consumer''
rather than ``passenger'' for consistency with use of this term
throughout the Department's consumer protection regulations. No
change in meaning is effectuated through use of the term
``consumer''.
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Subsection (f) specifies that an air carrier or foreign air carrier
must consider a passenger to have requested a refund if one of the
following criteria are met: (1) a flight is cancelled and the air
carrier or foreign air carrier does not offer a passenger an
alternative flight or any voucher, credit, or other form of
compensation pursuant to subsection (c) of section 42305; (2) a
passenger rejects the significantly delayed or changed flight,
rebooking on an alternative flight, or any voucher, credit, or other
form of compensation offered pursuant to subsection (c) of section
42305; or (3) a passenger does not respond to an offer of either of the
following: (A) a significantly delayed or changed flight or an
alternative flight and the flight departs without the passenger; or (B)
a voucher, credit, or other form of compensation by the date on which
the cancelled flight was scheduled to depart
[[Page 65535]]
or the date that the significantly delayed or changed flight
departs.\2\
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\2\ In a letter dated July 3, 2024, Airlines for America (A4A)
urges the Department to not interpret the Act as requiring airlines
to treat a passenger's failure to respond to an offer of alternative
transportation as a passenger's election to not fly on that flight.
See, <a href="https://www.regulations.gov/document/DOT-OST-2022-0089-5346">https://www.regulations.gov/document/DOT-OST-2022-0089-5346</a>.
Because the language in the Act would not allow the interpretation
suggested by A4A, the Department does not adopt the requested
interpretation.
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Subsection (c) specifies the manner in which an air carrier or
foreign air carrier could offer a voucher, credit, or other
compensation as an explicit alternative to a refund. An air carrier or
foreign air carrier can make such an offer only if the offer includes
clear and conspicuous notice of the offer's terms and the passenger's
right to a full refund. The alternative compensation must remain valid
and redeemable for at least five years from the date of issuance and
the recipient is notified of the expiration date. In addition, upon
request of an individual who self-identifies as having a disability,
the notice of the expiration date must be provided in an electronic
format accessible to the recipient.
The Act also defined a ``significantly changed or delayed flight''
in subsection (d) of section 42305 as a flight to include, at a
minimum, a flight where the passenger arrives at the passenger's
destination airport 3 or more hours after the original scheduled
arrival time for a domestic flight and 6 or more hours after the
original scheduled arrival time for an international flight.
In subsection (b) of section 42305, the Act established
requirements for the timing of the refunds required under subsection
(a). Air carriers and foreign air carriers must issue refunds not later
than 7 business days after the earliest date of the refund request, as
specified in subsection (f), for tickets purchased with a credit card,
and 20 days for tickets purchased with cash or another form of payment.
Subsection (e) of section 42305 requires that the Department issue
a rule to apply refund requirements to ticket agents for cancelled or
significantly delayed or changed flights within 1 year of the date of
enactment of the Act. Subsection (e) further requires the Department to
issue regulations requiring air carriers and foreign air carriers to
promptly transfer funds to a ticket agent if the Secretary determines
that the ticket agent is responsible for providing the refund and the
ticket agent does not possess the passenger's funds. Refunds provided
by ticket agents pursuant to the Department's regulations must comply
with the timelines specified in subsection (b)--7 business days for
credit card purchases and 20 days for cash purchases and purchases made
using other forms of payment--and the requirements for alternatives to
a refund specified in subsection (c)--clear and conspicuous notice of
the terms of the offer and the right to a refund, an expiration date of
no less than 5 years, and notification of the expiration date,
including for passengers that self-identify as having a disability.
Subsection (g) of section 42305 requires air carriers and foreign
air carriers to update their passenger notification systems to ensure
passengers owed a refund are notified of that right.
In this final rule, the Department amends its regulations in 14 CFR
parts 259, 260, and 399, as originally added or amended by the final
rule published on April 26, 2024, for consistency with the provisions
of the Act as described in the preceding paragraphs. The Department
also satisfies the rulemaking requirements of subsection (e) of 49
U.S.C. 42305. The Department's April 2024 final rule meets the
requirement of 42305(e)(1) for the Department to issue a final rule
within 1 year of enactment applying refund requirements to ticket
agents, and also includes the Department's determination of when a
ticket agent is responsible for providing refunds.\3\ In this final
rule, the Department also meets the requirement of 42305(e)(2) to issue
regulations requiring air carriers and foreign air carriers to promptly
transfer funds to a ticket agent if the Secretary determines that the
ticket agent is responsible for providing the refund and the ticket
agent does not possess the passenger's funds (see new Sec. 260.6(e)).
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\3\ The Department specified in the April 2024 final rule that
the merchant of record is the entity responsible for issuing the
refund when due, which constitutes the Secretarial determination
required under 49 U.S.C. 42305(e)(2).
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Compliance
Under the Act, the compliance and effective date for certain
requirements relating to ticket refunds due to airline cancellations or
significant change is May 16, 2024. Because those provisions are self-
effectuating, the Department's expectation is that airlines comply with
the provisions contained in the Act. Beyond those requirements that
went into effect under the Act on May 16, 2024, this final rule does
not change the compliance date of October 28, 2024, set forth in the
Department's April 26 final rule for the requirements regarding ticket
refunds due to airline cancellation or significant change, refunds of
baggage fees for significantly delayed bags, and refunds of ancillary
service fees when services are not provided. It also does not change
the compliance date of April 25, 2025, set forth in the Department's
April 26 final rule for the requirements regarding issuing travel
credits or vouchers to passengers who are affected by a serious
communicable disease.
Statutory Authority
The Department is issuing this rulemaking pursuant to authority
granted in the Act, Public Law 118-63. Because the Department is
codifying the requirements of the Act in this final rule, and
exercising no discretion in so doing, the Department has determined
that prior notice and comment are unnecessary, and there is good cause
to find that this rule is not subject to the notice and comment
requirements pursuant to 5 U.S.C. 553(b)(B). For these same reasons,
the Department also finds good cause to waive the 30-day delay in
effective date under 5 U.S.C. 553(d) and make this regulation effective
on August 12, 2024.
Regulatory Analyses and Notices
A. Executive Order 12866 (Regulatory Planning and Review) and DOT
Regulatory Policies and Procedures and Executive Order 13653 (Improving
Regulation and Regulatory Review)
The final rule was determined not to be a significant regulatory
action as defined in Executive Order (E.O.) 12866, ``Regulatory
Planning and Review,'' as amended by E.O. 14094, ``Modernizing
Regulatory Review.'' The rule was therefore not reviewed by the Office
of Management and Budget pursuant to E.O. 12866.
B. Regulatory Flexibility Act
The Regulatory Flexibility Act of 1980 (RFA) (5 U.S.C. 601, et
seq.) requires Federal agencies to review and assess the impact on
small entities of any regulation required by 5 U.S.C. 553 or any other
law to be published as a proposed rule for public comment prior to
issuance of a final rule. Because no notice of proposed rulemaking is
required for this rule under the Administrative Procedure Act, 5 U.S.C.
553, or any other law, the analytical provisions of the RFA do not
apply.
C. Executive Order 13132 (Federalism)
This final rule has been analyzed in accordance with the principles
and criteria contained in Executive Order 13132 (``Federalism''). This
rule, in which the Department codifies requirements imposed by statute,
does not include any provision that: (1) has substantial direct effects
on the States, the relationship between the national
[[Page 65536]]
government and the States, or the distribution of power and
responsibilities among the various levels of government; (2) imposes
substantial direct compliance costs on State and local governments; or
(3) preempts State law. States are already preempted from regulating in
this area by the Airline Deregulation Act, 49 U.S.C. 41713. Therefore,
the consultation and funding requirements of Executive Order 13132 do
not apply.
D. Executive Order 13175
This final rule has been analyzed in accordance with the principles
and criteria contained in Executive Order 13175 (``Consultation and
Coordination with Indian Tribal Governments''). Because none of the
provisions finalized in this rule would significantly or uniquely
affect the communities of the Indian tribal governments or impose
substantial direct compliance costs on them, the funding and
consultation requirements of Executive Order 13175 do not apply.
E. Paperwork Reduction Act
This final rule does not impose any new collection of information
that would require approval by the Office of Management and Budget
(OMB) under the Paperwork Reduction Act of 1995 (Pub. L. 104-13, 49
U.S.C. 3501 et seq.).
F. Unfunded Mandates Reform Act
The Unfunded Mandates Reform Act of 1995 (UMRA) requires, at 2
U.S.C. 1532, that agencies prepare an assessment of anticipated costs
and benefits before issuing any rule that may result in the expenditure
by State, local, and tribal governments, in the aggregate, or by the
private sector, of $100 million or more (adjusted annually for
inflation) in any one year. The Department has determined that this
final rule, in which the Department codifies requirements of the Act
will not have an effect on the private sector that exceeds this
threshold. As a result, the analytical requirements of the UMRA do not
apply to this final rule.
G. National Environmental Policy Act
The Department has analyzed the environmental impacts of this
action pursuant to the National Environmental Policy Act of 1969 (NEPA)
(42 U.S.C. 4321 et seq.) and has determined that it is categorically
excluded pursuant to DOT Order 5610.1C, Procedures for Considering
Environmental Impacts (44 FR 56420, October 1, 1979). Categorical
exclusions are actions identified in an agency's NEPA implementing
procedures that do not normally have a significant impact on the
environment and therefore do not require either an environmental
assessment (EA) or environmental impact statement (EIS). See 40 CFR
1508.4. Paragraph 4.c.6.i of DOT Order 5610.1C categorically excludes
``[a]ctions relating to consumer protection, including regulations.''
This final rule relates to consumer protection and codifies
requirements set forth in the Act. The Department does not anticipate
any environmental impacts, and there are no extraordinary circumstances
present in connection with this rulemaking.
H. Compliance With Pay-As-You-Go Act of 2023 (Fiscal Responsibility Act
of 2023, Pub. L. 118-5, Div. B, Title III)
In accordance with Compliance with Pay-As-You-Go Act of 2023
(Fiscal Responsibility Act of 2023, Pub. L. 118- 5, div. B, title III)
and OMB Memorandum (M-23-21) dated September 1, 2023, the Department
has determined that this final rule is not subject to the Pay-As-You-Go
Act of 2023 because it will not increase direct spending beyond
specified thresholds.
I. Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the Office of Information and Regulatory Affairs designated this rule
as not a ``major rule,'' as defined by 5 U.S.C. 804(2).
Signed in Washington, DC.
Subash Iyer,
Acting General Counsel, U.S. Department of Transportation.
List of Subjects
14 CFR Part 259
Air carriers, Consumer protection, Reporting and recordkeeping
requirements.
14 CFR Part 260
Air carriers, Consumer protection.
14 CFR Part 399
Administrative practice and procedure, Air carriers, Air rates and
fares, Air taxis, Consumer protection, Small businesses.
For the reasons set forth in the preamble, the Department amends
title 14 CFR chapter II as follows:
PART 259--ENHANCED PROTECTIONS FOR AIRLINE PASSENGERS
0
1. The authority citation for part 259 is revised to read as follows:
Authority: 49 U.S.C. 40101(a)(4), 40101(a)(9), 40113(a), 41702,
41708, 41712, 42301, and 42305.
0
2. Amend Sec. 259.3 by removing the definition of ``Prompt refunds''
and adding a definition for ``Prompt refund'' in its place to read as
follows:
Sec. 259.3 Definitions.
* * * * *
Prompt refund means refunds made within 7 business days after the
earliest date the refund was requested as set forth in 14 CFR
260.6(a)(2) as required by 14 CFR 374.3 for credit card purchases, and
within 20 calendar days after the earliest date the refund was
requested as set forth in 14 CFR 260.6(a)(2) for cash, check, debit
card, or other forms of purchases.
* * * * *
PART 260--REFUNDS FOR AIRLINE FARE AND ANCILLARY SERVICE FEES
0
3. The authority citation for part 260 is revised to read as follows:
Authority: 49 U.S.C. 40101(a), 41702, 41712, and 42305.
0
4. Revise Sec. 260.1 to read as follows:
Sec. 260.1 Purpose.
The purpose of this part is to ensure that carriers promptly refund
consumers for:
(a) Fees for ancillary services related to air travel that
consumers paid for but were not provided;
(b) Fees to transport checked bags that are lost or significantly
delayed; and
(c) Airfare including nonrefundable airfare for a flight that is
cancelled or significantly changed where the consumer does not accept
the significantly changed flight or rebooking on an alternative flight,
or accept any voucher, credit, or other compensation offered by the
carrier.
0
5. Amend Sec. 260.2 by removing the definitions of ``Prompt refunds''
and ``Significant change of flight itinerary or significantly changed
flight'' and adding in their place definitions for ``Prompt refund''
and ``Significantly delayed or changed flight'' to read as follows:
Sec. 260.2 Definitions.
* * * * *
Prompt refund means refunds made within 7 business days after the
earliest date the refund was requested as set forth in Sec.
260.6(a)(2) as required by 14 CFR 374.3 for credit card purchases and
within 20 calendar days after the earliest date the refund was
requested as set forth in Sec. 260.6(a)(2) for cash, check, debit
card, or other forms of purchases.
Significantly delayed or changed flight means a covered flight
itinerary with a delay or change made by a
[[Page 65537]]
covered carrier where, as the result of the delay or change:
(1) The consumer is scheduled to depart from the origination
airport three hours or more for domestic itineraries and six hours or
more for international itineraries earlier than the original scheduled
departure time;
(2) The consumer is scheduled to arrive at the destination airport
three or more hours for domestic itineraries or six or more hours for
international itineraries after the original scheduled arrival time;
(3) The consumer is scheduled to depart from a different
origination airport or arrive at a different destination airport;
(4) The consumer is scheduled to travel on an itinerary with more
connection points than that of the original itinerary;
(5) The consumer is downgraded to a lower class of service;
(6) The consumer who is an individual with a disability is
scheduled to travel through one or more connecting airports different
from the original itinerary; or
(7) The consumer who is an individual with a disability is
scheduled to travel on substitute aircraft on which one or more
accessibility features needed by the customer are unavailable.
* * * * *
0
6. Revise Sec. 260.6 to read as follows:
Sec. 260.6 Refunding fare for flights cancelled or significantly
delayed or changed by carriers.
(a) Carriers' obligation to provide refunds--(1) Carriers'
obligation. A covered carrier that is the merchant of record must
provide a full and prompt refund of the airfare, including any taxes
and ancillary fees, as set forth in paragraph (a)(2) of this section to
a consumer that holds a nonrefundable ticket on a scheduled flight to,
from, or within the United States for any cancelled flight or
significantly delayed or changed flight where the consumer chooses not
to:
(i) Fly on the significantly delayed or changed flight or accept
rebooking on an alternative flight; or
(ii) Accept any voucher, credit, or other form of compensation
offered by the air carrier or foreign air carrier pursuant to paragraph
(c) of this section.
(2) Automatic refunds. A full refund of the airfare, including any
taxes and ancillary fees, is due to a consumer as described in
paragraphs (a)(2)(i) through (iii) of this section:
(i) A flight is canceled and a consumer is not offered an
alternative flight or any voucher, credit, or other form of
compensation by the air carrier or foreign air carrier pursuant to
paragraph (c) of this section;
(ii) A consumer rejects the significantly delayed or changed
flight, rebooking on an alternative flight, or any voucher, credit, or
other form of compensation offered by the covered carrier pursuant to
paragraph (c) of this section; or
(iii) A consumer does not respond to an offer of:
(A) A significantly delayed or changed flight or an alternative
flight and the flight departs without the consumer; or
(B) A voucher, credit, or other form of compensation by the date on
which the cancelled flight was scheduled to depart or the date that the
significantly delayed or changed flight departs.
(b) Individuals with a disability. A carrier that is the merchant
of record must provide a full and prompt refund to an individual with a
disability upon notification by the individual with a disability that
he/she does not want to continue travel because of the significant
changes described in paragraphs (b)(1) through (3) of this section. The
covered carrier must also provide a full and prompt refund to any
individuals in the same reservation as the individual with a disability
who do not want to continue travel without the individual with a
disability in situations described in paragraphs (b)(1) through (3).
(1) The individual with a disability is downgraded to a lower class
of service that results in one or more accessibility features needed by
the individual becoming unavailable.
(2) The individual with a disability is scheduled to travel through
one or more connecting airports that are different from the original
itinerary.
(3) The individual with a disability is scheduled to travel on a
substitute aircraft on which one or more accessibility features
available on the original aircraft needed by the individual are
unavailable.
(c) Alternative to refund. A covered carrier may offer a voucher,
credit, or other form of compensation as an explicit alternative to
providing a refund required by paragraph (a) of this section if:
(1) The offer includes a clear and conspicuous notice of--
(i) The terms of the offer as specified in Sec. 260.8; and
(ii) The consumer's right to a full refund under this section.
(2) The voucher, credit, or other form of compensation offered
explicitly as an alternative to providing a refund required by
paragraph (a) of this section remains valid and redeemable by the
consumer for a period of at least five years from the date on which
such voucher, credit, or other form of compensation is issued;
(3) Upon the issuance of such voucher, credit, or other form of
compensation, a covered carrier notifies the recipient of the
expiration date of the voucher, credit, or other form of compensation;
and
(4) Upon request by an individual who self identifies as an
individual with a disability a covered carrier provides a notification
under paragraph (c)(3) of this section in an electronic format
accessible to the recipient.
(d) Carriers' obligation to notify ticket agents. In situations
where a ticket agent is the merchant of record for the transaction,
after receiving a refund request by a consumer through the ticket
agent, the carrier that canceled or significantly delayed or changed
the flight must inform the ticket agent without delay whether the
consumer is eligible for a refund under this section (i.e., whether the
consumer has accepted the significantly changed flight, the alternative
flight, or other compensation offered in lieu of refunds).
(e) Carriers' obligation to transfer funds to ticket agents. In
situations where a ticket agent is responsible for providing the refund
to the consumer pursuant to 14 CFR 399.80(l) and the ticket agent does
not possess the funds of the consumer, that carrier that has the funds
must promptly transfer the funds to the ticket agent.
0
7. Revise Sec. 260.7 to read as follows:
Sec. 260.7 Affirmative acceptance of an offer of alternative
compensation.
A covered carrier must not deem a consumer to have accepted an
offer for travel credits, vouchers, or other compensation in lieu of a
refund under Sec. 260.6(c) unless the consumer affirmatively agrees to
the alternative form of compensation.
0
8. Revise Sec. 260.8 to read as follows:
Sec. 260.8 Disclosing material restrictions, conditions, or
limitations.
In carrying out the requirements of Sec. 260.6(c), a covered
carrier must clearly and conspicuously disclose, no later than at the
time of voucher or credit offer, any material restrictions,
limitations, or conditions on travel credits, vouchers, or other
compensation, including but not limited to validity period, advance
purchase requirement, capacity restrictions, and blackout dates,
regardless of whether consumers are entitled to a refund.
[[Page 65538]]
Sec. Sec. 260.9 and 260.10 Redesignated as Sec. Sec. 260.10 and
260.11]
0
9. Redesignate Sec. Sec. 260.9 and 260.10 as Sec. Sec. 260.10 and
260.11, respectively, and add new Sec. 260.9 to as follows:
Sec. 260.9 Notification to consumers.
(a) Upon the occurrence of a flight cancellation or a significant
delay or change, a covered carrier must timely notify affected
consumers about the cancellation or significant delay or change, and
the information relating to any alternative to refund as provided in
Sec. 260.6(c).
(b) Covered air carriers must ensure that their passenger
notification systems notify passengers owed a refund pursuant to Sec.
260.6(a) and (b) of their right to receive a refund. Covered carriers
that provide notification subscription services to passengers must
ensure notifications under this paragraph be provided through media
that the carriers offer and the subscribers choose, including emails,
text messages, and push notices from mobile apps.
PART 399--STATEMENTS OF GENERAL POLICY
0
10. The authority citation for part 399 is revised to read as follows:
Authority: 49 U.S.C. 40113(a), 41712, 46106, 46107, and 42305.
0
11. Amend Sec. 399.80 by revising paragraph (l) to read as follows:
Sec. 399.80 Unfair and deceptive practices of ticket agents.
* * * * *
(l) Failing to make a prompt refund of airfare (including any taxes
and ancillary fees) to a consumer, upon request, for a cancelled flight
or a significantly delayed or changed flight if the consumer chooses
not to travel or accept compensation in lieu of a refund in situations
described in 14 CFR 260.6(a) and (b) when the ticket agent is the
merchant of record. Failing to provide a prompt refund of airfare
(including any taxes and ancillary fees), upon request, for a
significantly delayed or changed flight itinerary to consumers on the
same reservation as an individual with a disability who does not want
to continue travel because of a significant change described in
paragraph (l)(1)(vii)(E) of this section related to downgrades or
paragraph (l)(1)(vii)(G) of this section related to aircraft
substitution which result in one or more accessibility features needed
by the individual with a disability becoming unavailable or because of
the significant change described in paragraph (l)(1)(vii)(F) of this
section related to change in connecting airports. A prompt refund is
one that is made within 7 business days of the ticket agent receiving
information from a carrier as specified in 14 CFR 260.6(d), as required
by 12 CFR part 1026 for credit card purchases, and within 20 calendar
days of refund becoming due for cash, check, debit card, or other forms
of purchases. Ticket agents must provide the refunds in the original
form of payment (i.e., money is returned to individual using whatever
payment method the individual used to make the original payment, such
as a check, a credit card, a debit card, cash, or airline miles),
unless the consumer agrees to receive the refund in another form of
payment that is cash equivalent. A ticket agent may retain a service
fee charged when issuing the original ticket to the extent that service
is for more than processing payment for a flight that the consumer
found. That fee must be on a per-passenger basis and its existence,
amount, and the non-refundable nature if that is the case must be
clearly and prominently disclosed to consumers at the time they
purchase the airfare. Ticket agents may offer alternative
transportation, travel credits, vouchers, or other compensation that
remains valid and redeemable by the consumer for a period of at least 5
years from the date on which such voucher, credit, or other form of
compensation in lieu of refunds but must first inform consumers that
they are entitled to a refund if that is the case. Ticket agents must
clearly disclose any material restrictions, conditions, and limitations
on travel credits, vouchers, or other compensation they offer,
including the expiration date of the travel credits, vouchers, or other
compensation, which must be provided, upon request, to an individual
who self identifies as an individual with a disability in an electronic
format accessible to the recipient.
(1) For purposes of this paragraph (l), the following definitions
apply:
(i) Business days means Monday through Friday, excluding Federal
holidays in the United States.
(ii) Cancelled flight or cancellation means a flight with a
specific flight number scheduled to be operated between a specific
origin-destination city pair that was published in a carrier's Computer
Reservation System at the time of the ticket sale but was not operated
by the carrier.
(iii) Cash equivalent means a form of payment that can be used like
cash, including but not limited to a check, a prepaid card, funds
transferred to the passenger's bank account, funds provided through
digital payment methods (e.g., PayPal, Venmo), or a gift card that is
widely accepted in commerce. It is not cash equivalent if consumers
bear the burden for maintenance or usage fees related to the payment.
(iv) Class of service means seating in the same cabin class such as
First, Business, Premium Economy, or Economy class, which is defined
based on seat location in the aircraft and seat characteristics such as
width, seat recline angles, or pitch (including the amount of legroom).
(v) Covered flight means a scheduled flight to, from, or within the
United States.
(vi) Merchant of record means the entity responsible for processing
payments by consumers for airfare, as shown in the consumer's financial
charge statements such as debit or credit card charge statements.
(vii) Significant delayed or changed flight means a covered flight
itinerary with a delay or change made by a U.S. or foreign carrier
where as the result of the delay or change:
(A) The consumer is scheduled to depart from the origination
airport three hours or more for domestic itineraries and six hours or
more for international itineraries earlier than the original scheduled
departure time;
(B) The consumer is scheduled to arrive at the destination airport
three hours or more for domestic itineraries or six hours or more for
international itineraries later than the original scheduled arrival
time;
(C) The consumer is scheduled to depart from a different
origination airport or arrive at a different destination airport;
(D) The consumer is scheduled to travel on an itinerary with more
connection points than that of the original itinerary;
(E) The consumer is downgraded to a lower class of service;
(F) The consumer with a disability is scheduled to travel through
one or more connecting airports that are different from the original
itinerary; or
(G) The consumer with a disability is scheduled to travel on
substitute aircraft on which one or more accessibility features needed
by the passenger are unavailable.
* * * * *
[FR Doc. 2024-17602 Filed 8-9-24; 8:45 am]
BILLING CODE 4910-9X-P
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</html>Indexed from Federal Register on August 12, 2024.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.