Aviation Consumer Protection Advisory Committee; Notice of Public Meeting, 48068-48071 [2022-16843]
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48068
Federal Register / Vol. 87, No. 150 / Friday, August 5, 2022 / Notices
DEPARTMENT OF TRANSPORTATION
Office of the Secretary
[Docket No. DOT–OST–2018–0190]
Aviation Consumer Protection
Advisory Committee; Notice of Public
Meeting
Office of the Secretary (OST),
Department of Transportation (DOT).
ACTION: Notice of public meeting.
AGENCY:
This Notice announces the
public meeting of the Aviation
Consumer Protection Advisory
Committee (ACPAC), to be held
virtually on the topic of airline ticket
refunds and related consumer
protection matters.
DATES: The virtual meeting will be held
on Monday, August 22, 2022, from
10:00 a.m. to 5:30 p.m., Eastern Daylight
Time. The meeting is open to the public,
subject to any technical and/or capacity
limitations. Requests to attend the
meeting must be submitted to https://
usdot.zoomgov.com/webinar/register/
WN_e_B-NtXfT8KlqgoNCH3f7w. We
encourage interested parties to register
by Monday, August 15, 2022.
Communication Access Real-time
Translation (CART) and sign language
interpretation will be provided during
the meeting. Requests for additional
accommodations because of a disability
must be received at ACPAC_
08.22.2022@dot.gov by August 15, 2022.
If you wish to speak during the meeting,
you should submit a request at ACPAC_
08.22.2022@dot.gov no later than
August 15, 2022.
ADDRESSES: The virtual meeting will be
open to the public and held via the
Zoom Webinar Platform. Virtual
attendance information will be provided
upon registration. An agenda will be
available on the Department’s Office of
Aviation Consumer Protection website
at https://www.transportation.gov/
airconsumer/ACPAC in advance of the
meeting.
SUMMARY:
To
register and attend this virtual meeting,
please use the link: https://
usdot.zoomgov.com/webinar/register/
WN_e_B-NtXfT8KlqgoNCH3f7w.
Attendance is open to the public subject
to any technical and/or capacity
limitations. For further information,
please contact Cristina Draguta,
Attorney-Advisor, by email at
Cristina.Draguta@dot.gov.
SUPPLEMENTARY INFORMATION:
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FOR FURTHER INFORMATION CONTACT:
I. Background
The ACPAC evaluates the Department
of Transportation’s current aviation
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consumer protection programs and
provides recommendations to the
Secretary for improving them, as well as
recommending any additional consumer
protections that may be needed.
The subject of airline ticket refunds
was discussed in an ACPAC meeting
held on December 2, 2021. The
Department planned for the ACPAC to
continue its discussion on airline ticket
refunds after issuance of the Notice of
Proposed Rulemaking (NPRM) on
Airline Ticket Refunds and Consumer
Protections (RIN 2105–AF04). On
August 2, 2022, the Department issued
the NPRM, which is available at https://
www.transportation.gov/airconsumer/
latest-news. The Department is now
scheduling a meeting to provide the
ACPAC further opportunity to discuss
issues related to airline ticket refunds,
particularly the proposals in the
Department’s NPRM.
II. Agenda
During the August 22, 2022, meeting,
the Department will provide an
opportunity for public input and
continue the discussion on airline ticket
refunds and related consumer
protection matters. Regarding airline
ticket refunds, the Department’s NPRM
proposes, pursuant to 49 U.S.C. 41712,
which prohibits U.S. air carriers, foreign
air carriers, and ticket agents from
engaging in unfair practices in the sale
of air transportation, to require carriers
and ticket agents to provide requested
refunds to passengers when a carrier
cancels or significantly changes a flight
to, from, or within the United States.
The Department’s existing rule has not
defined the terms ‘‘significant change’’
and ‘‘cancellation’’ in regulation or
statute. The Department proposes to
clarify and codify that, under the
Department’s rule requiring airlines to
provide prompt refunds when ticket
refunds are due and its rule requiring
ticket agents to make refunds promptly
when service cannot be performed as
contracted, carriers and ticket agents
must provide prompt ticket refunds to
passengers when a carrier cancels or
makes a significant change to a flight.
The NPRM further proposes to define
cancellation and significant change,
including addressing whether new
itineraries involving delayed arrivals or
early departures of a certain length or
additional stops constitute a significant
change requiring a refund. The NPRM
also addresses protections for
consumers who are restricted or
prohibited from traveling or determine
not to travel consistent with public
health guidance related to a serious
communicable disease. Comments on
the NPRM may be submitted into the
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rulemaking Docket (DOT–OST–2022–
0089) at any time during the public
comment period, including before and
after the ACPAC meeting. This meeting
will allow the ACPAC to hear from all
interested stakeholders regarding the
Department’s proposals and what
ACPAC should consider as it
determines what recommendations, if
any, to make to the Secretary on this
topic.
III. Public Participation
The August 22, 2022, meeting will
begin at 10:00 a.m. EST, and the
Department will provide time for
opening remarks and present a summary
of the Department’s relevant regulations,
an overview of the December ACPAC
meeting, and an overview of the NPRM.
The meeting will then transition to
input from participants, including
members of the public. There will be a
lunch break and further input and
discussion will continue in the
afternoon to help inform the ACPAC
members on what they should consider
when making recommendations, if any,
on this topic. To inform and enable the
public to provide input, the Department
summarizes the main proposals of the
NPRM below and seeks information on
the following questions regarding these
proposals:
1. Ticket Refunds Due to Airline
Cancellations and Significant Changes
of Itineraries
a. Defining Significant Changes of
Itineraries
The Proposal:
A ‘‘significant change of flight
itinerary’’ is defined as a change to a
covered flight itinerary made by a
covered carrier where:
(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
hours or more for domestic itineraries
and six hours or more for international
itineraries later than 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; or
(6) the passenger is scheduled to
travel on a different type of aircraft with
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a significant downgrade of the available
amenities and travel experiences.
Question 1(a)(i): Should the
Department define a ‘‘significant change
of flight itinerary’’ that would result in
a consumer being entitled to a ticket
refund or should the Department
continue its current practice to allow
airlines to determine their own
standards for flight itinerary changes
that lead to refund eligibility?
Question 1(a)(ii): If the Department
adopts a standard for significant early
departure or arrival delays that would
result in refund eligibility, should the
standard be a set number of hours based
on domestic vs. international itineraries,
as proposed in the NPRM, or a tiered
standard based on the total travel
duration of an itinerary? Is there any
other objective benchmark that should
be considered as the basis of calculating
whether a refund is due because of
flight delays and early departures?
Question 1(a)(iii): Should the
Department’s rule consider the change
of origination or destination airport, or
the increase of the number of
connections a significant change that
would result in a refund due?
Question 1(a)(iv): What types of
aircraft downgrade should be
considered as a basis for a consumer to
request a refund? Should the
determination be made on a case-bycase basis? Are there certain types of
changes in amenities or air travel
experience as the results of aircraft
downgrade that should automatically be
considered significant for purposes of
requiring a refund be offered?
Question 1(a)(v): Are there any other
itinerary changes not proposed in the
NPRM that should be considered
‘‘significant’’ for purposes of requiring a
refund be offered?
b. Forms of Refund
The Proposal:
• Airlines and ticket agents must
refund passengers by returning the
money in the original form of payment
or by providing the refund in cash or a
form of cash equivalent.
• Cash equivalent is defined as 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.
• Airlines and ticket agents may offer
other compensation choices such as
travel credits or vouchers and store gift
cards in lieu of refunds but must first
inform consumers that they are entitled
to a refund if that is the case.
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• Airlines and ticket agents must
disclose material restrictions,
conditions, and limitations on the
compensation options provided to the
consumer.
Question 1(b)(i): Should the
Department’s rule mandate that refunds
must be provided in the original form of
payment, or should the Department
allow airlines and ticket agents to
choose another form of payment that is
cash or cash equivalent?
Question 1(b)(ii): How should the
form of refund affect the refund
deadlines? For example, if a passenger
purchased the ticket with a credit card
but agrees to accept the refund by a
check, which refund deadline (7 days or
20 days) should apply?
c. Obligations on Ticket Agents
The Proposal:
• Ticket agents must provide prompt
refunds to consumers when an airline
cancels or makes a significant change to
a flight itinerary that the ticket agents
sold directly to consumers (i.e., the
ticket agents’ identities are shown in the
consumers’ financial charge
statements).
• Ticket agents are permitted to
deduct the service fee for booking travel
or issuing tickets from the refund or
charge a fee for issuing the refund, as
long as the amount of the fee is based
on a per-passenger basis and the
existence of the fee was clearly and
prominently disclosed to consumers at
the time of ticket purchase.
Question 1(c)(i): For an itinerary
purchased from or through a ticket
agent, which entity (the ticket agent or
the airline) should be responsible for the
refund when it is due? Is it reasonable
to require the entity that ‘‘sold’’ the
itinerary (i.e., the entity that shows in
the consumer’s financial charge
statement) be responsible for the
refund?
Question 1(c)(ii): When issuing a
refund requires actions by both a ticket
agent and an airline, should the
Department hold both entities liable
regardless of which entity ‘‘sold’’ the
ticket?
Question 1(c)(iii): If a ticket agent is
relying on an airline to confirm that the
consumer is eligible for a refund, should
the Department allow the mandatory
refund timeframes (7 days for credit
card refund and 20 days for other forms
of refund) to start only when the airline
confirms refund eligibility?
Question 1(c)(iv): When issuing a
refund that is due, is it reasonable to
allow the ticket agents to retain the
service charges for issuing the original
tickets as the service has already been
provided? Should the Department
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require that ticket agents clearly
disclose such a fee retention when
consumers purchase tickets?
2. Providing Travel Vouchers to
Consumers Who are Restricted or
Prohibited From Traveling, or Determine
Not To Travel Due to Concerns Related
to a Serious Communicable Disease
a. Providing Travel Credits or Vouchers
to Consumers Who Are Restricted or
Prohibited From Traveling or Who
Determine Not To Travel Consistent
With Public Health Guidance Related to
a Serious Communicable Disease
The Proposal:
• Airlines and ticket agents must
provide non-expiring travel credits or
vouchers to a consumer if, after
purchasing the tickets, a government
order was issued to prohibit the
consumer from leaving the origination
or entering into the destination or
transition point, or if the government
order renders the consumer’s travel
meaningless.
Question 2(a)(i): Should the
Department’s consumer protection rule
cover only situations in which travel is
made physically impossible by a
government restriction (e.g., stay-athome order or border closure) or should
it also cover situations in which the
restriction renders the travel
meaningless (e.g., a situation in which
a consumer traveling to attend an event
would miss the event because of a
mandatory quarantine requirement at
the destination)?
Question 2(a)(ii): Should this
requirement only apply during a public
health emergency or apply whenever a
government restriction or prohibition on
travel related to a communicable disease
is imposed?
Question 2(a)(iii): What types of
evidentiary documents should airlines
and ticket agents be permitted to request
as a condition to issue credits or
vouchers under this requirement?
b. Providing Travel Credits or Vouchers
to Consumers Who Are Advised by a
Medical Professional or Determine
Consistent With Public Health Guidance
Not To Travel To Protect Themselves
From a Serious Communicable Disease
During a Public Health Emergency
The Proposal:
• Airlines and ticket agents must
provide non-expiring travel credits or
vouchers to consumers who are advised
by a medical professional or determine
consistent with public health guidance
issued by the CDC, comparable foreign
agencies, or WHO not to travel by air to
protect themselves from a serious
communicable disease during a public
health emergency.
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Question 2(b)(i): Is it reasonable to
require airlines and ticket agents to
issue travel credits or vouchers to
consumers, who have purchased their
tickets before the declaration of a public
health emergency, because they have
been advised by a medical professional
or determined, consistent with public
health guidance, that they need to
postpone or cancel travel to protect
themselves from a serious
communicable disease?
Question 2(b)(ii): Should this
requirement also cover consumers who
have purchased their tickets after the
declaration of the public health
emergency but later find out that certain
conditions (e.g., the consumer’s health
condition) have changed and because of
such change they need to postpone or
cancel travel?
Question 2(b)(iii): Should this
requirement cover only consumers who
have legitimate concerns about their
own health conditions, or should this
requirement also cover:
• consumers who are reluctant to
travel because of the risk they may bring
to others (e.g., family members they care
for); and/or
• consumers who are unable to travel
alone because their travel companion
decides not to travel due to health
reasons (e.g., the minor child of a
consumer who decides not to travel to
protect his or her own health)?
Question 2(b)(iv): What types of
evidentiary documents should airlines
and ticket agents be permitted to request
as a condition for issuance of credits or
vouchers under this requirement?
The proposal:
• Regardless whether there is a public
health emergency, airlines and ticket
agents must provide a non-expiring
travel credit or voucher to a consumer
who is advised by a medical
professional or determines consistent
with public health guidance issued by
CDC, comparable foreign agencies, or
WHO not to travel by air because the
consumer has or may have contracted a
serious communicable disease and the
consumer’s condition is such that
traveling on a commercial flight would
pose a direct threat to the health of
others.
c. Providing Travel Credits or Vouchers
to Consumers Who Have or May Have
a Serious Communicable Disease
Question 2(c)(i): Is it reasonable to
define a serious communicable disease,
for the purpose of requesting a travel
credit or voucher, as a communicable
disease that is readily transmissible in
the aircraft cabin environment and
would likely cause significant health
consequences?
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Question 2(c)(ii): Are there concerns
about potential abuse of this
requirement? To prevent abuse, is it
reasonable for airlines or ticket agents to
request a written statement by a medical
professional for the specific consumer
requesting the credit or voucher?
Question 2(c)(iii): Instead of issuing
travel credits or vouchers, are there
other ways to protect the interests of
affected consumes and promote public
health, such as requiring airlines and
ticket agents to waive the ticket change
fees or keep the ticket open for future
travel?
d. Type and Value of Travel Credits or
Vouchers, Supporting Documentation,
and Service Fees
The proposal:
• The travel vouchers or credits
provided to eligible consumers must be
non-expiring.
• The value of the credit or voucher
must be equal to or greater than the fare
(including taxes and fees and unused
ancillary service fees); ticket agents are
allowed to deduct from the value any
service fees paid for the issuance of the
original ticket.
• Carriers and ticket agents may not
impose conditions, limitations, and
restrictions on the credits or vouchers
that are unreasonable and would
materially reduce their value in
comparison to the original purchase
prices.
• To determine whether a consumer
is eligible for the travel credit or voucher
under this proposal, airlines and ticket
agents may require the consumer to
present supporting documentation, as
appropriate, such as government travel
restriction orders or a statement from a
medical professional.
• Airlines and ticket agents may
impose a service fee for issuing the
credit or voucher; the existence of the
fee must be disclosed to consumers at
the time of ticket sale.
Question 2(d)(i): Is it reasonable to
require airlines and ticket agents to
issue non-expiring travel credits or
vouchers to consumers who are
restricted or prohibited from traveling,
or advised by a medical professional or
determines consistent with public
health guidance not to travel due to
concerns of a serious communicable
disease? Instead of non-expiring credits
or vouchers, is it adequate for consumer
protection purpose to require the credit
or vouchers be transferrable but with a
limited validity period? Should airlines
and ticket agents be required to allow
multiple transfers?
Question 2(d)(ii): What type of travel
credits or vouchers would be preferred
by most consumers—credits or vouchers
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of the same or greater value of the
original ticket price, or credits or
vouchers redeemable for the same
itinerary in the future regardless of the
price?
Question 2(d)(iii): Is it reasonable to
allow carriers and ticket agents to
charge a service fee for issuing the travel
credits or vouchers?
3. Providing Refunds to Consumers Who
Are Restricted or Prohibited From
Traveling, or Advised by a Medical
Professional or Determine Consistent
With Public Health Guidance Not To
Travel, Due to Concerns Related to a
Serious Communicable Disease During a
Public Health Emergency if Airlines or
Ticket Agents Receive Significant
Government Financial Assistance
The proposal:
• When there is a declaration of a
public health emergency and DOT has
published a determination that a
covered carrier or ticket agent received
significant government financial
assistance as a result of the public
health emergency, the covered airline or
ticket agent must provide a requested
refund to a consumer in lieu of the nonexpiring travel credit or voucher as
required by the proposal.
• In order to receive the refund, an
eligible consumer must make a request
from the carrier or ticket agent within 12
months of the date that DOT publishes
a determination that the government
financial assistance received by the
carrier or ticket agent is significant.
• Airlines and ticket agents may
charge a service fee for issuing the
refund and may require supporting
documentation from consumers to prove
eligibility.
Question (3)(a): Should airlines and
ticket agents be required to provide
refunds, in lieu of travel credits or
vouchers, to eligible consumers who are
restricted, prohibited, or advised not to
travel during a public health emergency
due to concerns related to a serious
communicable disease if the airlines or
ticket agents receive significant
government financial assistance related
to that public health emergency?
Question (3)(b): For the purpose of
this requirement, should the
Department consider not only Federal
government financial assistance
provided to U.S. airlines and ticket
agents, but also foreign central
government financial assistance
provided to foreign airlines and ticket
agents selling air transportation to the
United States?
Question (3)(c): Is the process
proposed in the NPRM to determine
what government financial assistance is
‘‘significant’’ reasonable (i.e., for each
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public health emergency, the
Department would apply relevant
factors in the determination and seek
public comments before finalizing the
threshold)?
Question (3)(d): What factors should
be considered when the Department
determines whether the amount of
government financial assistance
provided to an airline or ticket agent is
‘‘significant’’? Is it reasonable to
consider the size of the entity (annual
enplanements for airlines, annual
revenue and the number of employees
for airlines and ticket agents), year-overyear comparison of traffic and revenue
before and after the declaration of the
public health emergency, the among of
government financial assistance
accepted in relation to the entity’s
annual revenue? Is it reasonable to also
consider a foreign carrier’s annual
enplanement to and from the United
States in addition to total enplanement
globally? What other considerations are
relevant in this determination? Should
there be different standards for airlines
and for ticket agents?
Question (3)(e): Is it reasonable to
require consumers, who have not
already requested a travel credit or
voucher, to make a refund request from
the airlines or ticket agents within 12
months after a determination has been
made by the Department that the airline
or ticket agent has received
‘‘significant’’ government financial
assistance?
At the August meeting, individual
members of the public will have an
opportunity to make remarks. However,
depending on the volume of requests for
oral comments that we receive and the
time available, we may not be able to
hear from everyone who submitted a
request. Any oral comments presented
must be limited to the objectives of the
committee and will be limited to three
(3) minutes per person. Individual
members of the public who wish to
present oral comments must notify the
Department of Transportation, no later
than Monday, August 15, 2022, via
email at ACPAC_08.22.2022@dot.gov
that they wish to present oral
comments. The email should (1)
identify (by the question number as
listed in this Notice) the specific
question(s) on which you wish to
provide comments; (2) state the
organization or entity you are
representing or that you are speaking as
a member of the public; and (3) provide
a written summary of the oral comments
you wish to present at the meeting on
the question(s). Due to the limited time
during the meeting, the Department will
review all speaking request submissions
and notify those who are selected to
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speak in advance of the meeting. If there
is an interest in addressing a question
not identified in this Notice but related
to airline ticket refunds, please identify
that topic in your request. All prepared
remarks submitted on time will be
accepted and considered as part of the
meeting’s record.
Members of the public who do not
wish to speak at the meeting but have
comments that are specifically directed
to the ACPAC members for
consideration may submit their written
comments electronically at any time
prior to August 19, 2022, to the ACPAC
Docket (DOT–OST–2018–0190). In
addition, any substantive comments on
the NPRM to be considered by the
Department in the rulemaking should be
submitted into the NPRM Docket (DOT–
OST–2022–0089) directly.
IV. Viewing Documents
Documents associated with the
ACPAC may be accessed in the ACPAC
Docket (DOT–OST–2018–0190).
Documents associated with the NPRM
on Airline Ticket Refunds and
Consumer Protections may be accessed
in the rulemaking Docket (DOT–OST–
2022–0089). Dockets may be accessed at
https://www.regulations.gov. After
entering the relevant docket number
click the link to ‘‘Open Docket Folder’’
and choose the document to review.
Signed in Washington, DC, on this 2nd day
of August 2022.
John E. Putnam,
General Counsel.
[FR Doc. 2022–16843 Filed 8–4–22; 8:45 am]
BILLING CODE 4910–9X–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
Proposed Collection; Comment
Request for Affordable Care Act
Internal Claims and Appeals and
External Review Disclosures
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice and request for
comments.
AGENCY:
The Internal Revenue Service,
as part of its continuing effort to reduce
paperwork and respondent burden,
invites the general public and other
Federal agencies to take this
opportunity to comment on continuing
information collections, as required by
the Paperwork Reduction Act of 1995.
The IRS is soliciting comments
concerning the Affordable Care Act
internal claims and appeals and external
review disclosures.
SUMMARY:
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48071
Written comments should be
received on or before October 3, 2022 to
be assured of consideration
ADDRESSES: Direct all written comments
to Andres Garcia, Internal Revenue
Service, Room 6526, 1111 Constitution
Avenue NW, Washington, DC 20224, or
by email to pra.comments@irs.gov.
Include OMB control number 1545–
2182 or Affordable Care Act Internal
Claims and Appeals and External
review Disclosures, in the subject line of
the message.
FOR FURTHER INFORMATION CONTACT:
Requests for additional information or
copies of the form should be directed to
Kerry Dennis at (202) 317–5751, or at
Internal Revenue Service, Room 6526,
1111 Constitution Avenue NW,
Washington DC 20224, or through the
internet, at Kerry.L.Dennis@irs.gov.
SUPPLEMENTARY INFORMATION:
Title: Affordable Care Act Internal
Claims and Appeals and External
review Disclosures.
OMB Number: 1545–2182.
Regulation Number: T.D. 9494 and
T.D. 9955.
Abstract: This collection of
information request includes the
information collection and third- party
notice and disclosure requirements that
a plan must satisfy under final
regulations implementing provisions of
the Affordable Care Act pertaining to
internal claims and appeals, and the
external review process. The No
Surprise Act extends the balance billing
protections related to external reviews
to grandfathered plans. The definitions
of group health plan and health
insurance issuer that are cited in section
110 of the No Surprises Act include
both grandfathered and nongrandfathered plans and coverage.
Accordingly, the practical effect of
section 110 of the No Surprises Act is
that grandfathered health plans must
provide external review for adverse
benefit determinations involving
benefits subject to these surprise billing
protections. Grandfathered and nongrandfathered plans must provide
claimants, free of charge, any new or
additional evidence considered, relied
upon, or generated by the plan or issuer
in connection with the claim, and the
requirement to comply either with a
State external review process or a
Federal review process. The disclosure
requirements of the Federal external
review process require (1) a preliminary
review by plans of requests for external
appeals; (2) Independent Review
Organizations (IROs) to notify claimants
of eligibility and acceptance for external
review; (3) the plan or issuer to provide
IROs with documentation and other
DATES:
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Agencies
[Federal Register Volume 87, Number 150 (Friday, August 5, 2022)]
[Notices]
[Pages 48068-48071]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-16843]
[[Page 48068]]
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DEPARTMENT OF TRANSPORTATION
Office of the Secretary
[Docket No. DOT-OST-2018-0190]
Aviation Consumer Protection Advisory Committee; Notice of Public
Meeting
AGENCY: Office of the Secretary (OST), Department of Transportation
(DOT).
ACTION: Notice of public meeting.
-----------------------------------------------------------------------
SUMMARY: This Notice announces the public meeting of the Aviation
Consumer Protection Advisory Committee (ACPAC), to be held virtually on
the topic of airline ticket refunds and related consumer protection
matters.
DATES: The virtual meeting will be held on Monday, August 22, 2022,
from 10:00 a.m. to 5:30 p.m., Eastern Daylight Time. The meeting is
open to the public, subject to any technical and/or capacity
limitations. Requests to attend the meeting must be submitted to
https://usdot.zoomgov.com/webinar/register/WN_e_B-NtXfT8KlqgoNCH3f7w.
We encourage interested parties to register by Monday, August 15, 2022.
Communication Access Real-time Translation (CART) and sign language
interpretation will be provided during the meeting. Requests for
additional accommodations because of a disability must be received at
[email protected] by August 15, 2022. If you wish to speak
during the meeting, you should submit a request at
[email protected] no later than August 15, 2022.
ADDRESSES: The virtual meeting will be open to the public and held via
the Zoom Webinar Platform. Virtual attendance information will be
provided upon registration. An agenda will be available on the
Department's Office of Aviation Consumer Protection website at https://www.transportation.gov/airconsumer/ACPAC in advance of the meeting.
FOR FURTHER INFORMATION CONTACT: To register and attend this virtual
meeting, please use the link: https://usdot.zoomgov.com/webinar/register/WN_e_B-NtXfT8KlqgoNCH3f7w. Attendance is open to the public
subject to any technical and/or capacity limitations. For further
information, please contact Cristina Draguta, Attorney-Advisor, by
email at [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
The ACPAC evaluates the Department of Transportation's current
aviation consumer protection programs and provides recommendations to
the Secretary for improving them, as well as recommending any
additional consumer protections that may be needed.
The subject of airline ticket refunds was discussed in an ACPAC
meeting held on December 2, 2021. The Department planned for the ACPAC
to continue its discussion on airline ticket refunds after issuance of
the Notice of Proposed Rulemaking (NPRM) on Airline Ticket Refunds and
Consumer Protections (RIN 2105-AF04). On August 2, 2022, the Department
issued the NPRM, which is available at https://www.transportation.gov/airconsumer/latest-news. The Department is now scheduling a meeting to
provide the ACPAC further opportunity to discuss issues related to
airline ticket refunds, particularly the proposals in the Department's
NPRM.
II. Agenda
During the August 22, 2022, meeting, the Department will provide an
opportunity for public input and continue the discussion on airline
ticket refunds and related consumer protection matters. Regarding
airline ticket refunds, the Department's NPRM proposes, pursuant to 49
U.S.C. 41712, which prohibits U.S. air carriers, foreign air carriers,
and ticket agents from engaging in unfair practices in the sale of air
transportation, to require carriers and ticket agents to provide
requested refunds to passengers when a carrier cancels or significantly
changes a flight to, from, or within the United States. The
Department's existing rule has not defined the terms ``significant
change'' and ``cancellation'' in regulation or statute. The Department
proposes to clarify and codify that, under the Department's rule
requiring airlines to provide prompt refunds when ticket refunds are
due and its rule requiring ticket agents to make refunds promptly when
service cannot be performed as contracted, carriers and ticket agents
must provide prompt ticket refunds to passengers when a carrier cancels
or makes a significant change to a flight. The NPRM further proposes to
define cancellation and significant change, including addressing
whether new itineraries involving delayed arrivals or early departures
of a certain length or additional stops constitute a significant change
requiring a refund. The NPRM also addresses protections for consumers
who are restricted or prohibited from traveling or determine not to
travel consistent with public health guidance related to a serious
communicable disease. Comments on the NPRM may be submitted into the
rulemaking Docket (DOT-OST-2022-0089) at any time during the public
comment period, including before and after the ACPAC meeting. This
meeting will allow the ACPAC to hear from all interested stakeholders
regarding the Department's proposals and what ACPAC should consider as
it determines what recommendations, if any, to make to the Secretary on
this topic.
III. Public Participation
The August 22, 2022, meeting will begin at 10:00 a.m. EST, and the
Department will provide time for opening remarks and present a summary
of the Department's relevant regulations, an overview of the December
ACPAC meeting, and an overview of the NPRM. The meeting will then
transition to input from participants, including members of the public.
There will be a lunch break and further input and discussion will
continue in the afternoon to help inform the ACPAC members on what they
should consider when making recommendations, if any, on this topic. To
inform and enable the public to provide input, the Department
summarizes the main proposals of the NPRM below and seeks information
on the following questions regarding these proposals:
1. Ticket Refunds Due to Airline Cancellations and Significant Changes
of Itineraries
a. Defining Significant Changes of Itineraries
The Proposal:
A ``significant change of flight itinerary'' is defined as a change
to a covered flight itinerary made by a covered carrier where:
(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 hours or more for domestic itineraries and six hours or more for
international itineraries later than 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; or
(6) the passenger is scheduled to travel on a different type of
aircraft with
[[Page 48069]]
a significant downgrade of the available amenities and travel
experiences.
Question 1(a)(i): Should the Department define a ``significant
change of flight itinerary'' that would result in a consumer being
entitled to a ticket refund or should the Department continue its
current practice to allow airlines to determine their own standards for
flight itinerary changes that lead to refund eligibility?
Question 1(a)(ii): If the Department adopts a standard for
significant early departure or arrival delays that would result in
refund eligibility, should the standard be a set number of hours based
on domestic vs. international itineraries, as proposed in the NPRM, or
a tiered standard based on the total travel duration of an itinerary?
Is there any other objective benchmark that should be considered as the
basis of calculating whether a refund is due because of flight delays
and early departures?
Question 1(a)(iii): Should the Department's rule consider the
change of origination or destination airport, or the increase of the
number of connections a significant change that would result in a
refund due?
Question 1(a)(iv): What types of aircraft downgrade should be
considered as a basis for a consumer to request a refund? Should the
determination be made on a case-by-case basis? Are there certain types
of changes in amenities or air travel experience as the results of
aircraft downgrade that should automatically be considered significant
for purposes of requiring a refund be offered?
Question 1(a)(v): Are there any other itinerary changes not
proposed in the NPRM that should be considered ``significant'' for
purposes of requiring a refund be offered?
b. Forms of Refund
The Proposal:
Airlines and ticket agents must refund passengers by
returning the money in the original form of payment or by providing the
refund in cash or a form of cash equivalent.
Cash equivalent is defined as 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.
Airlines and ticket agents may offer other compensation
choices such as travel credits or vouchers and store gift cards in lieu
of refunds but must first inform consumers that they are entitled to a
refund if that is the case.
Airlines and ticket agents must disclose material
restrictions, conditions, and limitations on the compensation options
provided to the consumer.
Question 1(b)(i): Should the Department's rule mandate that refunds
must be provided in the original form of payment, or should the
Department allow airlines and ticket agents to choose another form of
payment that is cash or cash equivalent?
Question 1(b)(ii): How should the form of refund affect the refund
deadlines? For example, if a passenger purchased the ticket with a
credit card but agrees to accept the refund by a check, which refund
deadline (7 days or 20 days) should apply?
c. Obligations on Ticket Agents
The Proposal:
Ticket agents must provide prompt refunds to consumers
when an airline cancels or makes a significant change to a flight
itinerary that the ticket agents sold directly to consumers (i.e., the
ticket agents' identities are shown in the consumers' financial charge
statements).
Ticket agents are permitted to deduct the service fee for
booking travel or issuing tickets from the refund or charge a fee for
issuing the refund, as long as the amount of the fee is based on a per-
passenger basis and the existence of the fee was clearly and
prominently disclosed to consumers at the time of ticket purchase.
Question 1(c)(i): For an itinerary purchased from or through a
ticket agent, which entity (the ticket agent or the airline) should be
responsible for the refund when it is due? Is it reasonable to require
the entity that ``sold'' the itinerary (i.e., the entity that shows in
the consumer's financial charge statement) be responsible for the
refund?
Question 1(c)(ii): When issuing a refund requires actions by both a
ticket agent and an airline, should the Department hold both entities
liable regardless of which entity ``sold'' the ticket?
Question 1(c)(iii): If a ticket agent is relying on an airline to
confirm that the consumer is eligible for a refund, should the
Department allow the mandatory refund timeframes (7 days for credit
card refund and 20 days for other forms of refund) to start only when
the airline confirms refund eligibility?
Question 1(c)(iv): When issuing a refund that is due, is it
reasonable to allow the ticket agents to retain the service charges for
issuing the original tickets as the service has already been provided?
Should the Department require that ticket agents clearly disclose such
a fee retention when consumers purchase tickets?
2. Providing Travel Vouchers to Consumers Who are Restricted or
Prohibited From Traveling, or Determine Not To Travel Due to Concerns
Related to a Serious Communicable Disease
a. Providing Travel Credits or Vouchers to Consumers Who Are Restricted
or Prohibited From Traveling or Who Determine Not To Travel Consistent
With Public Health Guidance Related to a Serious Communicable Disease
The Proposal:
Airlines and ticket agents must provide non-expiring
travel credits or vouchers to a consumer if, after purchasing the
tickets, a government order was issued to prohibit the consumer from
leaving the origination or entering into the destination or transition
point, or if the government order renders the consumer's travel
meaningless.
Question 2(a)(i): Should the Department's consumer protection rule
cover only situations in which travel is made physically impossible by
a government restriction (e.g., stay-at-home order or border closure)
or should it also cover situations in which the restriction renders the
travel meaningless (e.g., a situation in which a consumer traveling to
attend an event would miss the event because of a mandatory quarantine
requirement at the destination)?
Question 2(a)(ii): Should this requirement only apply during a
public health emergency or apply whenever a government restriction or
prohibition on travel related to a communicable disease is imposed?
Question 2(a)(iii): What types of evidentiary documents should
airlines and ticket agents be permitted to request as a condition to
issue credits or vouchers under this requirement?
b. Providing Travel Credits or Vouchers to Consumers Who Are Advised by
a Medical Professional or Determine Consistent With Public Health
Guidance Not To Travel To Protect Themselves From a Serious
Communicable Disease During a Public Health Emergency
The Proposal:
Airlines and ticket agents must provide non-expiring
travel credits or vouchers to consumers who are advised by a medical
professional or determine consistent with public health guidance issued
by the CDC, comparable foreign agencies, or WHO not to travel by air to
protect themselves from a serious communicable disease during a public
health emergency.
[[Page 48070]]
Question 2(b)(i): Is it reasonable to require airlines and ticket
agents to issue travel credits or vouchers to consumers, who have
purchased their tickets before the declaration of a public health
emergency, because they have been advised by a medical professional or
determined, consistent with public health guidance, that they need to
postpone or cancel travel to protect themselves from a serious
communicable disease?
Question 2(b)(ii): Should this requirement also cover consumers who
have purchased their tickets after the declaration of the public health
emergency but later find out that certain conditions (e.g., the
consumer's health condition) have changed and because of such change
they need to postpone or cancel travel?
Question 2(b)(iii): Should this requirement cover only consumers
who have legitimate concerns about their own health conditions, or
should this requirement also cover:
consumers who are reluctant to travel because of the risk
they may bring to others (e.g., family members they care for); and/or
consumers who are unable to travel alone because their
travel companion decides not to travel due to health reasons (e.g., the
minor child of a consumer who decides not to travel to protect his or
her own health)?
Question 2(b)(iv): What types of evidentiary documents should
airlines and ticket agents be permitted to request as a condition for
issuance of credits or vouchers under this requirement?
The proposal:
Regardless whether there is a public health emergency,
airlines and ticket agents must provide a non-expiring travel credit or
voucher to a consumer who is advised by a medical professional or
determines consistent with public health guidance issued by CDC,
comparable foreign agencies, or WHO not to travel by air because the
consumer has or may have contracted a serious communicable disease and
the consumer's condition is such that traveling on a commercial flight
would pose a direct threat to the health of others.
c. Providing Travel Credits or Vouchers to Consumers Who Have or May
Have a Serious Communicable Disease
Question 2(c)(i): Is it reasonable to define a serious communicable
disease, for the purpose of requesting a travel credit or voucher, as a
communicable disease that is readily transmissible in the aircraft
cabin environment and would likely cause significant health
consequences?
Question 2(c)(ii): Are there concerns about potential abuse of this
requirement? To prevent abuse, is it reasonable for airlines or ticket
agents to request a written statement by a medical professional for the
specific consumer requesting the credit or voucher?
Question 2(c)(iii): Instead of issuing travel credits or vouchers,
are there other ways to protect the interests of affected consumes and
promote public health, such as requiring airlines and ticket agents to
waive the ticket change fees or keep the ticket open for future travel?
d. Type and Value of Travel Credits or Vouchers, Supporting
Documentation, and Service Fees
The proposal:
The travel vouchers or credits provided to eligible
consumers must be non-expiring.
The value of the credit or voucher must be equal to or
greater than the fare (including taxes and fees and unused ancillary
service fees); ticket agents are allowed to deduct from the value any
service fees paid for the issuance of the original ticket.
Carriers and ticket agents may not impose conditions,
limitations, and restrictions on the credits or vouchers that are
unreasonable and would materially reduce their value in comparison to
the original purchase prices.
To determine whether a consumer is eligible for the travel
credit or voucher under this proposal, airlines and ticket agents may
require the consumer to present supporting documentation, as
appropriate, such as government travel restriction orders or a
statement from a medical professional.
Airlines and ticket agents may impose a service fee for
issuing the credit or voucher; the existence of the fee must be
disclosed to consumers at the time of ticket sale.
Question 2(d)(i): Is it reasonable to require airlines and ticket
agents to issue non-expiring travel credits or vouchers to consumers
who are restricted or prohibited from traveling, or advised by a
medical professional or determines consistent with public health
guidance not to travel due to concerns of a serious communicable
disease? Instead of non-expiring credits or vouchers, is it adequate
for consumer protection purpose to require the credit or vouchers be
transferrable but with a limited validity period? Should airlines and
ticket agents be required to allow multiple transfers?
Question 2(d)(ii): What type of travel credits or vouchers would be
preferred by most consumers--credits or vouchers of the same or greater
value of the original ticket price, or credits or vouchers redeemable
for the same itinerary in the future regardless of the price?
Question 2(d)(iii): Is it reasonable to allow carriers and ticket
agents to charge a service fee for issuing the travel credits or
vouchers?
3. Providing Refunds to Consumers Who Are Restricted or Prohibited From
Traveling, or Advised by a Medical Professional or Determine Consistent
With Public Health Guidance Not To Travel, Due to Concerns Related to a
Serious Communicable Disease During a Public Health Emergency if
Airlines or Ticket Agents Receive Significant Government Financial
Assistance
The proposal:
When there is a declaration of a public health emergency
and DOT has published a determination that a covered carrier or ticket
agent received significant government financial assistance as a result
of the public health emergency, the covered airline or ticket agent
must provide a requested refund to a consumer in lieu of the non-
expiring travel credit or voucher as required by the proposal.
In order to receive the refund, an eligible consumer must
make a request from the carrier or ticket agent within 12 months of the
date that DOT publishes a determination that the government financial
assistance received by the carrier or ticket agent is significant.
Airlines and ticket agents may charge a service fee for
issuing the refund and may require supporting documentation from
consumers to prove eligibility.
Question (3)(a): Should airlines and ticket agents be required to
provide refunds, in lieu of travel credits or vouchers, to eligible
consumers who are restricted, prohibited, or advised not to travel
during a public health emergency due to concerns related to a serious
communicable disease if the airlines or ticket agents receive
significant government financial assistance related to that public
health emergency?
Question (3)(b): For the purpose of this requirement, should the
Department consider not only Federal government financial assistance
provided to U.S. airlines and ticket agents, but also foreign central
government financial assistance provided to foreign airlines and ticket
agents selling air transportation to the United States?
Question (3)(c): Is the process proposed in the NPRM to determine
what government financial assistance is ``significant'' reasonable
(i.e., for each
[[Page 48071]]
public health emergency, the Department would apply relevant factors in
the determination and seek public comments before finalizing the
threshold)?
Question (3)(d): What factors should be considered when the
Department determines whether the amount of government financial
assistance provided to an airline or ticket agent is ``significant''?
Is it reasonable to consider the size of the entity (annual
enplanements for airlines, annual revenue and the number of employees
for airlines and ticket agents), year-over-year comparison of traffic
and revenue before and after the declaration of the public health
emergency, the among of government financial assistance accepted in
relation to the entity's annual revenue? Is it reasonable to also
consider a foreign carrier's annual enplanement to and from the United
States in addition to total enplanement globally? What other
considerations are relevant in this determination? Should there be
different standards for airlines and for ticket agents?
Question (3)(e): Is it reasonable to require consumers, who have
not already requested a travel credit or voucher, to make a refund
request from the airlines or ticket agents within 12 months after a
determination has been made by the Department that the airline or
ticket agent has received ``significant'' government financial
assistance?
At the August meeting, individual members of the public will have
an opportunity to make remarks. However, depending on the volume of
requests for oral comments that we receive and the time available, we
may not be able to hear from everyone who submitted a request. Any oral
comments presented must be limited to the objectives of the committee
and will be limited to three (3) minutes per person. Individual members
of the public who wish to present oral comments must notify the
Department of Transportation, no later than Monday, August 15, 2022,
via email at [email protected] that they wish to present oral
comments. The email should (1) identify (by the question number as
listed in this Notice) the specific question(s) on which you wish to
provide comments; (2) state the organization or entity you are
representing or that you are speaking as a member of the public; and
(3) provide a written summary of the oral comments you wish to present
at the meeting on the question(s). Due to the limited time during the
meeting, the Department will review all speaking request submissions
and notify those who are selected to speak in advance of the meeting.
If there is an interest in addressing a question not identified in this
Notice but related to airline ticket refunds, please identify that
topic in your request. All prepared remarks submitted on time will be
accepted and considered as part of the meeting's record.
Members of the public who do not wish to speak at the meeting but
have comments that are specifically directed to the ACPAC members for
consideration may submit their written comments electronically at any
time prior to August 19, 2022, to the ACPAC Docket (DOT-OST-2018-0190).
In addition, any substantive comments on the NPRM to be considered by
the Department in the rulemaking should be submitted into the NPRM
Docket (DOT-OST-2022-0089) directly.
IV. Viewing Documents
Documents associated with the ACPAC may be accessed in the ACPAC
Docket (DOT-OST-2018-0190). Documents associated with the NPRM on
Airline Ticket Refunds and Consumer Protections may be accessed in the
rulemaking Docket (DOT-OST-2022-0089). Dockets may be accessed at
https://www.regulations.gov. After entering the relevant docket number
click the link to ``Open Docket Folder'' and choose the document to
review.
Signed in Washington, DC, on this 2nd day of August 2022.
John E. Putnam,
General Counsel.
[FR Doc. 2022-16843 Filed 8-4-22; 8:45 am]
BILLING CODE 4910-9X-P