The U.S. Department of Transportation (DOT) announced Friday that it was proposing a new rule that would require airlines to refund fees for checked bags and ancillary services if consumers pay for services they do not receive.
According to the proposed rules, if a consumer’s bags are significantly delayed, or the consumer pays for advanced seat selection or wi-fi and doesn’t receive those services, fees paid for those services should be refunded.
“Consumers deserve to receive the services they pay for or to get their money back when they don’t,” said Transportation Secretary Pete Buttigieg. “This proposed rule would require airlines to refund fees to passengers whose bags are significantly delayed or who don’t receive the services that they paid for.”
The new proposed rule is spurred by President Joe Biden’s Executive Order Promoting Competition in the American Economy, the DOT said.
Under current rules, passengers are entitled to a fee refund if their checked bags are lost. The new proposed rule would require airlines to refund checked baggage fees when the baggage is delayed beyond 12 hours for domestic flights and 25 hours for international flights.
Additionally, if passengers pay for any ancillary services, those fees would be required to be promptly refunded if the services are not provided by the airline. Currently, the DOT’s rules require airlines to refund fees for services not provided only in cases of oversales or flight cancellations.