US airlines will now follow new guidelines to automatically reimburse customers for canceled flights



The new rules issued by the Joe Biden administration aim to enhance consumer protections in air travel and ensure that passengers receive fair treatment from airlines. These rules include requirements for automatic cash refunds, transparency in fee disclosures, and limitations on deceptive advertising practices by airlines.

Key provisions of the new rules include:

1. Automatic refunds: Airlines are now required to automatically issue refunds to passengers when owed, without passengers having to explicitly request them or face unnecessary delays. Refunds must be provided within seven business days for credit card purchases and within 20 calendar days for other payment methods.

2. Refund methods: Refunds must be issued in cash or the original payment method used by the passenger, such as credit card or airline miles. Airlines are prohibited from substituting vouchers or other forms of compensation unless explicitly chosen by the passenger.

3. Fee transparency: Airlines must disclose upfront any fees charged for services such as checked bags, carry-on bags, reservation changes, or cancellations. These fees must be clearly stated at the time of ticket purchase and cannot be hidden behind hyperlinks.

4. Baggage policies: Airlines must specify weight and dimension limitations for checked and carry-on bags, as well as any restrictions on changing or canceling flights. Passengers must be informed about differences in fares when switching flights.

5. Seat assignment fees: Airlines must inform passengers that purchasing a seat is not necessary for travel, allowing them to avoid unnecessary seat-selection fees.

6. Fee information options: Passengers can choose to view fee information based on their participation in rewards programs, military status, or credit card usage. Alternatively, they can opt for standard fee information.

7. Advertising regulations: Airlines are prohibited from advertising promotional discounts or low-base fares that do not include all mandatory fees.

Additionally, the Biden administration is considering further rulemakings to address family-seating fees and ensure passenger compensation and amenities in case of flight delays or cancellations.

Overall, these rules aim to empower passengers, protect them from surprise fees, and hold airlines accountable for fair and transparent practices in air travel.


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