Thursday, June 3, 2010

New DOT Regulations in the Works

The Department of Transportation announced its intentions yesterday to ratchet up its already controversial airline consumer protection rules, see Enhancing Airline Passenger Protections, 74 Fed. Reg. 68, 983 (Dec. 30, 2009) (available here), with additional provisions which would:

• increase compensation for passengers involuntarily bumped from flights

• allow passengers to make and cancel reservations within 24 hours without penalty

• require full and prominently displayed disclosure of baggage fees as well as refunds and expense reimbursement when bags are not delivered on time

• require fair price advertising • prohibit price increases after a ticket is purchased

• mandate timely notice of flight status changes

See Press Release, DOT, DOT Proposes Additional Consumer Protections for Air Travelers, DOT 110-10 (June 2, 2010) (available here).

Blog readers interested in perusing the entire text of the new rule may do so here.  Additionally, Econometrica, Inc. has submitted a preliminary analysis of the proposed rule as part of the docket.  See Econometrica, Inc., Preliminary Regulatory Analysis: Consumer Rulemaking NPRM: Enhancing Airline Passenger Protections II, Dkt. No. DOT-OST-2010-0140 (May 24, 2010) (available here).

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