Prompt Refunds for Cancelled Flights Act

“(d) Prompt refunds for cancelled flights

“(1) In general—It shall be an unfair or deceptive practice under subsection (a) for any air carrier, foreign air carrier, or ticket agent that sells a ticket for air transportation to fail to provide a covered refund with respect to such ticket if the air transportation is cancelled or significantly changed.

“(2) Exclusion—Paragraph (1) does not apply if a ticket holder voluntarily accepts alternative transportation or other compensation offered in lieu of a covered refund.

“(3) Definitions—In this subsection:

“(A) Covered refund—The term covered refund means a refund of the amount paid for a ticket for air transportation that is provided—

“(i) to the holder of the ticket;

“(ii) in the same format in which the amount was paid; and

“(iii) not later than—

“(I) in the case of payment by credit card, debit card, or other electronic format, 48 hours after the relevant cancellation or significant change; or

“(II) in the case of payment by cash or check, 14 days after the relevant cancellation or significant change.

“(B) Significantly changed—The term significantly changed means, with respect to air transportation, that—

“(i) the departure or arrival time associated with such transportation has changed—

“(I) in the case of air transportation within the United States, by 3 or more hours; or

“(II) in the case of air transportation to or from a location outside the United States, by 6 or more hours;

“(ii) the departure or arrival airport associated with such transportation has changed;

“(iii) the number of intermediate stops associated with such transportation has increased; or

“(iv) the type of aircraft associated with such transportation has changed and, as determined by the Secretary, the change will result in a significant downgrade of the air transportation experience.”

“(8) Penalty for failure To provide covered refund—Notwithstanding paragraphs (1) and (5)(D), the amount of a civil penalty for a violation of section 41712(d) shall be the amount that is 10 times the amount paid for the relevant cancelled or significantly changed air transportation.”