(DailyChive.com) – A U.S. appeals court has temporarily blocked the Biden administration’s initiative on mandatory disclosure of airline fees over procedural issues.
At a Glance
- US appeals court halts Biden’s airline fee disclosure rule due to procedural errors
- USDOT’s authority recognized, but procedural steps needed correction
- The rule’s intention to prevent deceptive fee practices remains contested
- Major airlines continue legal challenges against the rule
- Airline industry claims the rules would incur significant costs and harms
Court Blocks Airline Fee Disclosure Rule
An appeals court stopped the Biden administration’s 2024 rule mandating upfront airline fee disclosures by finding procedural lapses by the U.S. Transportation Department (USDOT). The USDOT failed to allow airline comments on a key study, leading to the blockade. This regulatory halt highlights the challenge of balancing consumer rights and procedural fidelity.
The court acknowledged USDOT’s power to create fee transparency rules targeting unfair airline practices. However, the airlines argued the rules exceeded regulatory authority and would necessitate costly changes to their systems. USDOT had insisted on full fee disclosure to prevent “bait-and-switch” tactics.
A US appeals court blocked the Biden administration's 2024 rule on upfront disclosure of airline fees, saying the Transportation Department had not complied with procedural rules https://t.co/hXJIq851Dx pic.twitter.com/sRyo0DWvzq
— Reuters Legal (@ReutersLegal) January 28, 2025
The Airlines’ Legal Stand
Major airlines like American Airlines, Delta, and United, through the Airlines for America trade group, sued to overturn the rules. They cited financial burdens and overreach of regulatory authority. Airlines for America asserted that the mandates might “do more harm than good.” The airlines also challenged the compartmentalization of data during the comment period.
The court ruled that the USDOT should have allowed feedback on a pivotal study indicating limited societal benefits from the disclosed fees, an oversight that led to the stay’s imposition. This reflects the continuous tension between regulatory ambitions and procedural exactness.
The Biden administration wanted to force airlines to list all the fees customers must pay in a clear, easily understood format. A judge said that exceeded the Department of Transportation's authority, possibly killing the rule for good. https://t.co/0569bgPLdi
— Inc. (@Inc) July 30, 2024
Future Implications and Industry Impact
USDOT now has the chance to remedy these procedural errors, with potential effects on the rule’s destiny amid changing political landscapes. The Justice Department’s priorities may shift with different leadership, further complicating the issue’s resolution. Airline fees collection surged to $7.1 billion in 2023, underscoring the economic stakes involved.
“DOT should have allowed Petitioners the opportunity to comment on the study” – judges
The court’s decision reinforces the call for procedural diligence in regulatory measures. As USDOT addresses these concerns, the future of consumer protection in air travel, along with industry financial considerations, remains in flux.
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