The U.S. Court of Appeals has temporarily blocked a rule from the Department of Transportation (DoT) to mandate upfront disclosure on airline fees and final travel costs for consumers. According to a report by Reuters, the court ruling blocks the new DoT rule pending a full review. The move is seen as a notable setback for the Biden administration’s efforts to invoke consumer protections regarding so-called “junk fees” attached to ticket pricing.
In April, a DoT final rule required airlines and ticket agents to fully disclose service fees along with the base airfare ticket cost. Seen as a move to clarify final travel costs for travelers, the rule was opposed by the airline industry, which argued the rule would create confusion among customers.
A three-judge panel of the 5th U.S. Circuit Court of Appeals apparently supports the airlines’ position and granted a request for a temporary block, writing that the rule “likely exceeds DoT’s authority and will irreparably harm airlines.” The industry had argued airlines would have to “spend millions” to recast their pricing platform to clarify baggage, rescheduling, cancellation and other fees for consumers.
