Coalition Calls on Transportation Secretary Chao to Implement Rule Requiring Airlines to Disclose Fees to Consumers
BALTIMORE (December 20, 2017) – Maryland Attorney General Brian E. Frosh today joined a coalition of 16 Attorneys General asking the Trump administration to not withdraw a rule requiring airlines and third-party booking companies to disclose baggage fees and other charges upfront, making it easier for passengers to know the true cost of their airline tickets.
The Transparency of Airline Ancillary Service Fees rule, proposed in January 2017, would have made it far easier for consumers to understand the full cost of their plane tickets. When a customer books a ticket, the baseline price is typically all that is shown. Carry-on baggage fees, checked baggage fees, seat fees, and more are not disclosed until booking is nearly complete – or even after tickets have been purchased. The rule would have required airlines to post all the fees up front at the beginning of the booking process – instead of surprising consumers at the end.
The Transportation Department announced earlier this month it was withdrawing the rule, which was proposed during the final days of the Obama administration. The department said in a notice posted online that the rule would have been "of limited public benefit." The coalition of Attorneys General asked U.S. Department of Transportation Secretary Elaine Chao in a letter today to not withdraw the rule. U.S. airlines are expected to earn $57 billion from these fees this year - and $7 billion from baggage fees alone.
"Consumers should not be hit with hidden fees at the end of the booking process," said Attorney General Frosh. "The airline industry makes millions of dollars each year with these hidden charges and consumers are entitled to transparency and up-front pricing when looking for the best travel deal."
In addition to Maryland, the Attorneys General of California, Connecticut, Delaware, Iowa, Maine, Massachusetts, Mississippi, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Vermont, Washington and the District of Columbia signed today's letter.
According to a 2016 study cited by the Attorneys General in their letter to Secretary Chao, travelers paid an average of $100 in fees per round-trip on Spirit Airlines, $97 on Frontier and $86.92 on United. "We regularly hear reports from consumers in our states who are confused and frustrated by these fees, which significantly alter the total cost of travel," the Attorneys General wrote.
The Attorneys General letter details the many different fees that airlines are increasingly charging consumers for basic services which were previously considered standard services covered by the basic ticket price. In addition to baggage fees, some airlines charge for printing boarding passes at the airport, allowing passengers to select seats and even to provide assistance to children traveling by themselves.
"It is critical that consumers are able to quickly and easily determine and understand the full costs of their travel to make informed choices," the letter states. The Attorneys General wrote that while they are committed to working collaboratively with the Transportation Department to protect consumers and ensure the country's aviation industry is able to grow, "this decision by your Department works against those goals, making it harder for Americans to be informed consumers when they travel."
BALTIMORE (December 20, 2017) – Maryland Attorney General Brian E. Frosh today joined a coalition of 16 Attorneys General asking the Trump administration to not withdraw a rule requiring airlines and third-party booking companies to disclose baggage fees and other charges upfront, making it easier for passengers to know the true cost of their airline tickets.
The Transparency of Airline Ancillary Service Fees rule, proposed in January 2017, would have made it far easier for consumers to understand the full cost of their plane tickets. When a customer books a ticket, the baseline price is typically all that is shown. Carry-on baggage fees, checked baggage fees, seat fees, and more are not disclosed until booking is nearly complete – or even after tickets have been purchased. The rule would have required airlines to post all the fees up front at the beginning of the booking process – instead of surprising consumers at the end.
The Transportation Department announced earlier this month it was withdrawing the rule, which was proposed during the final days of the Obama administration. The department said in a notice posted online that the rule would have been "of limited public benefit." The coalition of Attorneys General asked U.S. Department of Transportation Secretary Elaine Chao in a letter today to not withdraw the rule. U.S. airlines are expected to earn $57 billion from these fees this year - and $7 billion from baggage fees alone.
"Consumers should not be hit with hidden fees at the end of the booking process," said Attorney General Frosh. "The airline industry makes millions of dollars each year with these hidden charges and consumers are entitled to transparency and up-front pricing when looking for the best travel deal."
In addition to Maryland, the Attorneys General of California, Connecticut, Delaware, Iowa, Maine, Massachusetts, Mississippi, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Vermont, Washington and the District of Columbia signed today's letter.
According to a 2016 study cited by the Attorneys General in their letter to Secretary Chao, travelers paid an average of $100 in fees per round-trip on Spirit Airlines, $97 on Frontier and $86.92 on United. "We regularly hear reports from consumers in our states who are confused and frustrated by these fees, which significantly alter the total cost of travel," the Attorneys General wrote.
The Attorneys General letter details the many different fees that airlines are increasingly charging consumers for basic services which were previously considered standard services covered by the basic ticket price. In addition to baggage fees, some airlines charge for printing boarding passes at the airport, allowing passengers to select seats and even to provide assistance to children traveling by themselves.
"It is critical that consumers are able to quickly and easily determine and understand the full costs of their travel to make informed choices," the letter states. The Attorneys General wrote that while they are committed to working collaboratively with the Transportation Department to protect consumers and ensure the country's aviation industry is able to grow, "this decision by your Department works against those goals, making it harder for Americans to be informed consumers when they travel."