US government sets new rules protecting passengers from hidden fees

 The US government is finally dealing with what has become the biggest concern for air travelers, and it’s not the TSA’s pat downs or safety, seat size or anything else. It’s hidden fees.
 

The Department of Transportation (DOT) announced a new set of passenger protections aimed primarily at travelers’ growing frustration over airline fees.
 

The new rules do not set limits on how much carriers can charge for items such as bags and ticket changes but they do require the airlines to more clearly disclose fees in advertisements and on websites.
 

Ads will now be required to cite the full price, including government taxes that are often left to the fine print.
 

In addition, the new rules — which were praised by consumer advocate groups — went further in banning long tarmac delays to include international flights. The rules will also require airlines to reimburse bag fees for lost luggage and pay passengers almost double if they are bumped off flights.
 

The move came as the Consumer Travel Alliance (CTA) found that the top consumer priority in the Federal Aviation Administration (FAA) bill, which is making its way through the US Congress, is to have airlines disclose all fees before booking.
 

The survey was conducted among more than 500 frequent travelers online, and found that 58 percent of respondents said that forcing airlines to reveal these fees should be the number one consumer priority in the bill. Second was requiring airlines to provide services to consumers facing extended take-off delays (27 percent).
 

Even though fee information is available online, it is often hard for consumers to find and compare the information.
 

"They make it impossible for consumers to actually compare prices across airlines," said CTA head Charles Leocha. "You have to search like mad and the fees vary dramatically."
 

In 2010, U.S. airlines collected a total of more than US$9.2 billion in fees for checked baggage, priority boarding and other services, according to a 2011 CTA survey.
 

Fees vary among airlines, and are dependent upon factors including time of booking, time of payment and credit card carrier, Leocha said. The CTA was surprised to find the airlines were so "adamant" in withholding fee information from consumers, he said.
 

"In a service business, I’d think they would want to let everyone know about the fees," he said.
 

Other DOT provisions increase the compensation carriers must pay passengers who are involuntarily bumped from flights (from up to $800 to as much as $1,300 for the longest delays).

They also require the airlines to refund checked baggage fees if luggage is lost.
 

The new rules also call for airlines to promptly notify customers of delays over 30 minutes. The provisions impose a four-hour limit on time spent on the tarmac for delayed international flights, expanding a policy that has been in place for domestic flights for a year.
 

“Airline passengers have a right to be treated fairly,” Ray LaHood, the transportation secretary, said in a statement. “It’s just common sense that if an airline loses your bag or you get bumped from a flight because it was oversold, you should be reimbursed. The additional passenger protections we’re announcing today will help make sure air travelers are treated with the respect they deserve.”
 

The new rules will start in late August.
 

They require airlines to prominently disclose all potential fees on their web sites. The DOT did not specify how the fees would have to be displayed. But the government did single out the complicated baggage fees for special attention.
 

Rules require the airlines and ticket agents to refer passengers to up-to-date information about baggage charges, before and after buying their tickets. Bag fees must also be included in e-ticket confirmations sent to passengers.
 

“These new rules will materially improve the air passenger experience,” said Chris Russo, ASTA president and chairman of the board. “In the future, consumers will be better informed about their choices and more assured that their needs will be recognized.” ASTA also praised LaHood for “undertaking boldly to change the way airlines treat passengers across the board.”
 

But both ASTA and other consumer groups such as the Global Business Travel Association (GBTA) had some misgivings about the practices going far enough. GBTA called for airline officials to require airlines to provide ancillary fee and fare information on all platforms selling airline inventory, not just airline websites.
 

The Transportation Department also noted that it planned to issue a proposal later this year that would require extra fees to be displayed at all points of sale, not just on airline websites.
 

Airlines were not as enthusiastic.

The Air Transport Association, the airlines’ trade group, objected to the full-fare advertising requirement, calling the proposal “likely illegal.” They pointed out other businesses were not forced to include government taxes in advertised prices.
 

Spirit Airlines said in its filing that forcing carriers to advertise prices including additional fees “would be akin to McDonald’s being required to only advertise burgers including the price of fries and a Coke.”
 

By David Wilkening