Refunds and Other Consumer Protections (2024 FAA Reauthorization), 65534-65538 [2024-17602]
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Federal Register / Vol. 89, No. 155 / Monday, August 12, 2024 / Rules and Regulations
because of the rule’s significance and
the constitutional questions it raises, the
standards must be authorized by clear
authority. (ALC, No. 12834 at p. 10)
As discussed in section II.A of the
February 2024 Direct Final Rule, DOE
has clear authority to establish energy
conservation standards for cooking
products. 89 FR 11434, 11441–11443.
Further, the preemptive effect of Federal
energy conservation standards on State
laws is clearly described in EPCA. See
42 U.S.C. 6297.
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IV. Impact of Any Lessening of
Competition
EPCA directs DOE to consider any
lessening of competition that is likely to
result from new or amended standards.
(42 U.S.C. 629(p)(4)(A)(i) and (C)(i)(II);
42 U.S.C. 6295(o)(2)(B)(i)(V)) It also
directs the Attorney General of the
United States (‘‘Attorney General’’) to
determine the impact, if any, of any
lessening of competition likely to result
from a proposed standard and to
transmit such determination to the
Secretary within 60 days of the
publication of a proposed rule, together
with an analysis of the nature and
extent of the impact. (42 U.S.C.
6295(o)(2)(B)(i)(V) and (B)(ii)) To assist
the Attorney General in making this
determination, DOE provided the
Department of Justice (‘‘DOJ’’) with
copies of the February 2024 Direct Final
Rule, the corresponding NOPR, and the
February 2024 Direct Final Rule TSD for
review. DOE has published DOJ’s
comments at the end of this document.
In its letter responding to DOE, DOJ
concluded that, based on its review, the
direct final rule standards for consumer
conventional cooking products are
unlikely to have a significant adverse
impact on competition.
V. Conclusion
In summary, based on the previous
discussion, DOE has determined that
the comments received in response to
the direct final rule for new and
amended energy conservation standards
for consumer conventional cooking
products do not provide a reasonable
basis for withdrawal of the direct final
rule. As a result, the energy
conservation standards set forth in the
direct final rule became effective on
June 13, 2024. Compliance with these
standards is required on and after
January 31, 2028.
Signing Authority
This document of the Department of
Energy was signed on August 2, 2024,
by Jeffrey Marootian, Principal Deputy
Assistant Secretary for Energy Efficiency
and Renewable Energy, pursuant to
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15:55 Aug 09, 2024
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delegated authority from the Secretary
of Energy. That document with the
original signature and date is
maintained by DOE. For administrative
purposes only, and in compliance with
requirements of the Office of the Federal
Register, the undersigned DOE Federal
Register Liaison Officer has been
authorized to sign and submit the
document in electronic format for
publication, as an official document of
the Department of Energy. This
administrative process in no way alters
the legal effect of this document upon
publication in the Federal Register.
Signed in Washington, DC, on August 2,
2024.
Treena V. Garrett,
Federal Register Liaison Officer,U.S.
Department of Energy.
[FR Doc. 2024–17474 Filed 8–9–24; 8:45 am]
BILLING CODE 6450–01–P
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)
Office of the Secretary (OST),
Department of Transportation.
ACTION: Final rule.
AGENCY:
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),
clereece.kroha@dot.gov or
blane.workie@dot.gov (email).
SUPPLEMENTARY INFORMATION:
SUMMARY:
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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.
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
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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or the date that the significantly delayed
or changed flight departs.2
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
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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, https://
www.regulations.gov/document/DOT-OST-20220089-5346. 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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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 § 260.6(e)).
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
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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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
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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.).
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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
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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
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
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.
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§ 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
3. The authority citation for part 260
is revised to read as follows:
■
Authority: 49 U.S.C. 40101(a), 41702,
41712, and 42305.
■
4. Revise § 260.1 to read as follows:
§ 260.1
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).
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2. Amend § 259.3 by removing the
definition of ‘‘Prompt refunds’’ and
adding a definition for ‘‘Prompt refund’’
in its place to read as follows:
■
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.
■ 5. Amend § 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:
§ 260.2
Definitions.
*
*
*
*
*
Prompt refund means refunds made
within 7 business days after the earliest
date the refund was requested as set
forth in § 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 § 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
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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.
*
*
*
*
*
■ 6. Revise § 260.6 to read as follows:
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§ 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
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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 § 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
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65537
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.
■
7. Revise § 260.7 to read as follows:
§ 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
§ 260.6(c) unless the consumer
affirmatively agrees to the alternative
form of compensation.
■
8. Revise § 260.8 to read as follows:
§ 260.8 Disclosing material restrictions,
conditions, or limitations.
In carrying out the requirements of
§ 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.
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Federal Register / Vol. 89, No. 155 / Monday, August 12, 2024 / Rules and Regulations
§ § 260.9 and 260.10 Redesignated as
§§ 260.10 and 260.11]
9. Redesignate §§ 260.9 and 260.10 as
§§ 260.10 and 260.11, respectively, and
add new § 260.9 to as follows:
■
§ 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
§ 260.6(c).
(b) Covered air carriers must ensure
that their passenger notification systems
notify passengers owed a refund
pursuant to § 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
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.
11. Amend § 399.80 by revising
paragraph (l) to read as follows:
■
§ 399.80 Unfair and deceptive practices of
ticket agents.
khammond on DSKJM1Z7X2PROD with RULES
*
*
*
*
*
(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
VerDate Sep<11>2014
15:55 Aug 09, 2024
Jkt 262001
(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 nonrefundable 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
PO 00000
Frm 00024
Fmt 4700
Sfmt 4700
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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]]>Agencies
[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 [www.gpo.gov]
[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.
-----------------------------------------------------------------------
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),
[email protected] or [email protected] (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.
---------------------------------------------------------------------------
\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''.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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, https://www.regulations.gov/document/DOT-OST-2022-0089-5346.
Because the language in the Act would not allow the interpretation
suggested by A4A, the Department does not adopt the requested
interpretation.
---------------------------------------------------------------------------
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)).
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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
