US proposes requiring new airline fee disclosure rules

Bloomberg

President Joe Biden will unveil new regulations designed to tackle persistent inflation by requiring airline companies and Internet-service providers to be more transparent about hidden fees, as the White House battles rising costs threatening Democrats’ prospects in November elections.
A proposed rule requiring airlines to disclose more information about the fees they charge — such as those levied on passengers for cancelling a trip or parents seeking to sit next to their children on a flight — will headline the package, which Biden will unveil at a meeting of the White House Competition Council.
Biden will also highlight expected Federal Communications Commission requirements for internet-service providers to offer a clear breakdown of fees and other charges — similar to the nutrition label found on food purchased at grocery stores — to help consumers more easily comparison shop.
Meantime, in the agricultural sector, the administration is proposing to strengthen competition rules in poultry and livestock markets.
The efforts come amid the highest inflation in decades, which has damped prospects for Democrats to keep their narrow control of both chambers of Congress in November’s midterm elections. A Gallup survey conducted earlier this month found that a majority of Americans, 56%, say inflation is causing financial hardship for their household, while around eight in 10 Americans rate the economy as “only fair” or “poor” despite strong employment data.
Biden has planned a series of events throughout the week intended to highlight government efforts to combat rising prices, including an event on health-care costs and a summit on food security planned for Wednesday.
The new airline regulation would require that carriers, travel agents and online-ticket portals display all costs related to baggage options, flight changes and seat selection, the Department of Transportation said in a press release.
“Airline passengers deserve to know the full, true cost of their flights before they buy a ticket,” Transportation Secretary Pete Buttigieg said in the release.
Regulations imposed in 2012 require carriers to provide generic information about the potential for additional fees, but it generally only includes ranges of costs. Airlines have opposed adding more specific requirements, arguing it is too costly and not needed.
Buttigieg and the airlines have sparred for months over a surge in flight delays and cancellations as travel resumed rapidly in the aftermath of the pandemic. In recent weeks, the Department of Transportation unveiled a new online dashboard that details what services US airlines offer when flights are delayed or cancelled — a move the White House says led some carriers to proactively improve offerings for waylaid passengers.
The White House also said action is expected “in coming months” on an FCC proposal for mandatory disclosure of broadband fees. The requirement will help consumers easily comparison shop between internet-service options, which will promote competition and lower prices, the White House said.
The FCC proposed the so-called “broadband nutritional label” in January and said it’s required by Congress to act by November. It hasn’t voted on the matter.
Broadband providers in comments to the FCC said requiring too many details would confuse consumers and burden companies. Consumer advocates in their comments have said the industry’s current disclosures are incomplete and confusing.