US Codex
Bill
Notes

Title II — Consumer Protections

S. 2341 · 116th Congress · Jul 30, 2019 · Lineage

II Consumer Protections

Sec. 201 Protections relating to the imposition of fees that are not reasonable and proportional to the costs incurred

(a)
In general— Not later than 270 days after the date of the enactment of this Act, the Secretary shall prescribe regulations—
(1)
prohibiting an air carrier from imposing fees described in subsection (b) that are unreasonable or disproportional to the costs incurred by the air carrier; and
(2)
establishing standards for assessing whether such fees are reasonable and proportional to the costs incurred by the air carrier.
(b)
Fees described— The fees described in this subsection are—
(1)
any fee for a change or cancellation of a reservation for a flight in air transportation;
(2)
any fee relating to checked baggage or carry-on baggage to be transported on a flight;
(3)
any fee relating to seat selection or reservations on a flight;
(4)
any fee relating to changing between flights departing on the same day or flying standby on a flight; and
(5)
any other fee imposed by an air carrier relating to a flight.
(c)
Considerations— In establishing the standards required under subsection (a)(2), the Secretary shall consider—
(1)
with respect to a fee described in subsection (b)(1) imposed by an air carrier for a change or cancellation of a flight reservation—
(A)
any net benefit or cost to the air carrier from the change or cancellation, taking into consideration—
(i)
the ability of the air carrier to anticipate the expected average number of cancellations and changes and make reservations accordingly;
(ii)
the ability of the air carrier to fill a seat made available by a change or cancellation;
(iii)
any difference in the fare likely to be paid for a ticket sold to another passenger for a seat made available by the change or cancellation, as compared to the fare paid by the passenger who changed or canceled the passenger’s reservation; and
(iv)
the likelihood that the passenger changing or cancelling the passenger's reservation will fill a seat on another flight by the same air carrier;
(B)
the costs of processing the change or cancellation electronically; and
(C)
any related labor costs;
(2)
with respect to a fee described in subsection (b)(2) imposed by an air carrier relating to checked baggage—
(A)
the costs of processing checked baggage electronically; and
(B)
any related labor costs; and
(3)
any other considerations the Secretary considers appropriate.
(d)
Updated regulations— The Secretary shall update the standards required under subsection (a)(2) not less frequently than every 3 years.

Sec. 202 Protections relating to disclosure of flight information

(a)
Prohibition on limiting access of consumer to information— Not later than 180 days after the date of the enactment of this Act, the Secretary shall prescribe regulations prohibiting an air carrier from limiting the access of consumers to information relating to schedules, fares, fees, and taxes relating to flights in passenger air transportation.
(b)
Prohibition on withholding information— Not later than 180 days after the date of the enactment of this Act, the Secretary shall prescribe regulations prohibiting an air carrier, through a global distribution system or otherwise, from withholding flight, fare, scheduling, availability, and other information published by air carriers from consumers and online travel agents and metasearch engines that provide flight search tools.

Sec. 203 Transparency in pricing of tickets in air transportation

Not later than 180 days after the date of the enactment of this Act, the Secretary shall prescribe regulations requiring—
(1)
air carriers to provide useable, current, and accurate information in a user-friendly, accessible form, with respect to fares, applicable taxes, and ancillary fees to ticket agents, online travel agents, and metasearch engines that provide flight search tools;
(2)
air carriers to allow consumers to purchase tickets and pay for applicable taxes and ancillary fees through ticket agents, online travel agents, and metasearch engines that provide flight search tools;
(3)
air carriers, ticket agents, online travel agents, and metasearch engines that provide flight search tools to disclose all applicable taxes and any ancillary fees charged by an air carrier with respect to a fare that are applicable to the services identified by the purchaser, at any point at which the fare is shown in whole or in part; and
(4)
air carriers, ticket agents, online travel agents, and metasearch engines that provide flight search tools, in any telephonic communication with a prospective consumer in the United States regarding the cost of air transportation, to inform the consumer of all applicable taxes and any ancillary fees charged by an air carrier in relation to the air transportation and associated services requested by the consumer, at any point at which the cost of the air transportation is disclosed in whole or in part.

Sec. 204 Disclosure of lowest fares for air transportation

(a)
In general— Section 41712(c)(1) of title 49, United States Code, is amended—
(1)
in subparagraph (A), by striking “and” at the end;
(2)
in subparagraph (B), by striking the period at the end and inserting “; and”; and
(3)
by adding at the end the following:

“(C) the lowest available fare options for the flight and for each flight segment of the flight, if applicable.”

(b)
Regulations— The Secretary, in consultation with the Administrator, shall prescribe such regulations as may be necessary to carry out section 41712(c)(1)(C) of title 49, United States Code, as added by subsection (a)(3).

Sec. 205 Frequent flyer programs fairness and transparency

(a)
In general— Section 41712(c) of title 49, United States Code, is amended by adding at the end the following:

“(3) Frequent flyer programs—It shall be an unfair or deceptive practice under subsection (a) for any air carrier or foreign air carrier that offers a frequent flyer program—

“(A) to materially change the terms or conditions of the frequent flyer program without providing reasonable notice to consumers; or

“(B) to unfairly reduce or eliminate benefits earned by members of the frequent flyer program.”

(b)
Regulations—
(1)
In general— Not later than 180 days after the date of the enactment of this Act, the Secretary, in consultation with the Administrator, shall prescribe such regulations as may be necessary to carry out section 41712(c)(3) of title 49, United States Code, as added by subsection (a).
(2)
Considerations— In prescribing the regulations required under paragraph (1), the Secretary shall—
(A)
take into consideration—
(i)
the significance of the change to the frequent flyer program’s terms and conditions; and
(ii)
the amount of time between the notification provided to a consumer and the date on which the change takes effect; and
(B)
require each air carrier that offers a frequent flyer program to disclose, in a standardized format, when offering or enrolling consumers into the program, accurate information regarding the program’s rules, including—
(i)
the rate at which credits are earned;
(ii)
the minimum number of credits earned per flight;
(iii)
the number of credits needed for each award;
(iv)
any applicable deadlines for redeeming credits;
(v)
any restrictions on the transferability of earned credit and awards;
(vi)
other conditions and limitations of the program;
(vii)
the percentage of successful redemptions; and
(viii)
frequent flyer seats made available in the top origin and destination markets.

Sec. 206 Refunds for lost, damaged, delayed, or pilfered baggage

(a)
In general— Not later than 180 days after the date of the enactment of this Act, the Secretary shall prescribe regulations requiring an air carrier—
(1)
to promptly provide an automatic refund to a passenger in the amount of any ancillary fee charged by the air carrier for checked baggage if the passenger's checked baggage arrives damaged; and
(2)
to provide notification to a passenger who is impacted by lost, damaged, delayed, or pilfered baggage, through the passenger's chosen method of communication, of the procedure by which the passenger shall obtain a refund and the amount of the refund.
(b)
Inclusion in contract of carriage— An air carrier shall include the requirements under subsection (a) in the air carrier's contract of carriage.

Sec. 207 Passenger rights transparency

(a)
In general— Not later than 90 days after the date of the enactment of this Act, the Secretary shall prescribe regulations requiring air carriers to notify passengers of their rights and eligibility for refunds, compensation, and protections required by law, including by an air carrier’s contract of carriage, or otherwise available to passengers.
(b)
Requirements— In prescribing the regulations under subsection (a), the Secretary shall require air carriers—
(1)
to promptly and expressly notify eligible passengers and the public of their eligibility for refunds, compensation, and protections not later than 30 minutes after the air carrier becomes aware that such passengers have become eligible for such refunds, compensation, and protections;
(2)
if such air carriers permit passengers and other interested persons to subscribe to flight status notification services—
(A)
to deliver refunds, compensation, and protection notifications to subscribers to such services, by whatever means the air carrier offers that the subscriber chooses; and
(B)
to incorporate commitments with respect to such services into their customer service plans;
(3)
to continuously display information and eligibility requirements for refunds, compensation, and protections, including refunds, compensation, and protections relating to—
(A)
denied boarding and delays and cancellations (including on international flights); and
(B)
lost, damaged, or delayed luggage; and
(4)
to prominently display passengers' rights and contact information for the Department of Transportation’s consumer complaint system on boarding passes, computer-generated boarding passes, and ticketed itineraries, and at boarding gates and ticket counters.

Sec. 208 Private right of action against unfair and deceptive practices

Section 41712 of title 49, United States Code, as amended by section 104, is amended by adding at the end the following:

“(e) Private right of action

“(1) In general—Any individual who purchases a ticket for air transportation and is aggrieved by an action prohibited under this section may file a civil action for damages and injunctive relief in an appropriate district court of the United States or a State court located in the State in which—

“(A) the unlawful action is alleged to have been committed; or

“(B) the aggrieved individual resides.

“(2) Enforcement by a state—The attorney general of any State, as parens patriae, may bring a civil action to enforce the provisions of this section in—

“(A) any district court of the United States in that State; or

“(B) any State court that is located in that State and has jurisdiction over the defendant.”

Sec. 209 Fairness and transparency in contracts of carriage

(a)
In general— Subsection (a) of section 429(a) of the FAA Reauthorization Act of 2018 is amended by adding at the end the following:

“(7) Family seating policies, including seating policies for children under the age of 2.

“(8) Interline agreements and protections.

“(9) Such other terms and conditions as the Secretary considers appropriate.”

(b)
Resubmission— Not later than 90 days after the date of enactment of this Act, the Secretary shall require each air carrier to—
(1)
resubmit the summarized 1-page document described in such section 429 to take into account the amendment made by subsection (a); and
(2)
make available such revised document in a prominent location on its website pursuant to subsection (b) of such section 429.

Sec. 210 Private right of action for discrimination claims against air carriers

Section 41705 of title 49, United States Code, is amended by adding at the end the following:

“(d) Civil action

“(1) In general—Any individual who purchases a ticket for air transportation and is aggrieved by a violation by an air carrier of this section or a regulation prescribed under this section may, not later than 2 years after the date of the violation, bring a civil action in an appropriate district court of the United States.

“(2) Relief—In a civil action brought under paragraph (1) in which the plaintiff prevails—

“(A) the plaintiff may obtain equitable and legal relief, including compensatory and punitive damages; and

“(B) the court shall award reasonable attorney’s fees, reasonable expert fees, and the costs of the action to the plaintiff.

“(3) No requirement for exhaustion of remedies—An individual described in paragraph (1) is not required to exhaust administrative complaint procedures before filing a civil action under paragraph (1).

“(4) Rule of construction—Nothing in this subsection shall be construed to invalidate or limit other Federal or State laws affording to people with disabilities greater legal rights or protections than those granted in this section.”

Sec. 211 No preemption of consumer protection claims

Section 41713(b)(4) of title 49, United States Code, is amended by adding at the end the following:

“(D) No preemption of consumer protection claims—Nothing in subparagraphs (A) through (C) may be construed—

“(i) to preempt, displace, or supplant any action for civil damages or injunctive relief based on a State consumer protection statute; or

“(ii) to restrict the authority of any government entity, including an attorney general of a State, from bringing a legal claim on behalf of the citizens of the State.”

Sec. 212 Invalidation of pre-dispute arbitration and class-action waiver clauses in certain contracts relating to passenger air transportation

(a)
Arbitration— Notwithstanding any other provision of law, arbitration may be used to settle a controversy arising from or relating to a provision of a contract described in subsection (c) only if, after the controversy arises, all parties to the controversy consent in writing to use arbitration to settle the controversy.
(b)
Class actions— Notwithstanding any other provision of law, an agreement waiving the right of a person to bring, or otherwise prohibiting a person from bringing, a claim regarding a dispute relating to a provision of a contract described in subsection (c) as a class action that had not arisen before the date on which the agreement is executed shall not be enforceable and shall have no force or effect.
(c)
Contracts described— A contract described in this subsection is a contract—
(1)
for the purchase of a ticket for passenger air transportation;
(2)
setting forth the terms of a reward program of an air carrier; or
(3)
setting forth the terms under which an air carrier will provide a credit product.
(d)
Applicability— Subsections (a) and (b) shall apply with respect to contracts entered into or renewed on or after the date of the enactment of this Act.
(e)
Definitions— In this section:
(1)
Credit product—
(A)
In general— The term credit product means a plan offered by, or in partnership with, an air carrier—
(i)
under which the creditor reasonably contemplates repeated transactions;
(ii)
that prescribes the terms of such transactions; and
(iii)
that provides for a finance charge that may be computed from time to time on the outstanding unpaid balance.
(B)
Inclusion— A credit plan or open-end consumer credit plan that is a credit product within the meaning of subparagraph (A) is a credit product even if credit information is verified from time to time.
(2)
Passenger air transportation— The term passenger air transportation means the transportation of passengers and their property by aircraft.
(3)
Reward program— The term reward program means any reward program offered by an air carrier, including a frequent flyer program, under which a consumer earns mileage or other credits from the air carrier that can be exchanged for goods, services, or other benefits.

Sec. 213 Consumer complaint process improvement

(a)
In general— Section 42302 of title 49, United States Code, as amended by section 423 of the FAA Reauthorization Act of 2018, is amended—
(1)
by redesignating subsections (b) and (c) as subsections (c) and (d), respectively;
(2)
by inserting after subsection (a) the following:

“(b) Point of sale—Each air carrier, foreign air carrier, and ticket agent shall inform each consumer of a carrier service, at the point of sale, that the consumer can file a complaint about that service with the carrier and with the Aviation Consumer Protection Division of the Department of Transportation.”

(3)
by amending subsection (c), as redesignated by paragraph (1), to read as follows:

“(c) Internet website or other online service notice—Each air carrier and foreign air carrier shall include on a publicly available Internet website, any related mobile device application, and online service—

“(1) the hotline telephone number established under subsection (a) or the telephone number for the Aviation Consumer Protection Division of the Department of Transportation;

“(2) an active link and the email address, telephone number, and mailing address of the air carrier or foreign air carrier, as applicable, for a consumer to submit a complaint to the carrier about the quality of service;

“(3) notice that the consumer can file a complaint with the Aviation Consumer Protection Division of the Department of Transportation;

“(4) an active link to the Internet website of the Aviation Consumer Protection Division of the Department of Transportation for a consumer to file a complaint; and

“(5) the active link described in paragraph (2) on the same Internet website page as the active link described in paragraph (4).”

(4)
by adding after subsection (d), as redesignated by paragraph (1), the following:

“(e) Reporting Requirement—Upon receipt of any complaint, an air carrier shall send the content of the complaint to the Aviation Consumer Protection Division of the Department of Transportation.”

(b)
Regulations— Not later than 180 days after the date of the enactment of this Act, the Secretary shall prescribe regulations to implement the requirements of section 42302 of title 49, United States Code, as amended by subsection (a).