39–006 

113TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 113–554 

TRANSPARENT AIRFARES ACT OF 2014 

JULY 24, 2014.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. SHUSTER, from the Committee on Transportation and 

Infrastructure, submitted the following 

R E P O R T 

[To accompany H.R. 4156] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Transportation and Infrastructure, to whom 

was referred the bill (H.R. 4156) to amend title 49, United States 

Code, to allow advertisements and solicitations for passenger air 

transportation to state the base airfare of the transportation, and 

for other purposes, having considered the same, report favorably 

thereon without amendment and recommend that the bill do pass. 

CONTENTS 

Page 

Purpose of Legislation ............................................................................................. 2 

Background and Need for Legislation .................................................................... 2 

Hearings ................................................................................................................... 2 

Legislative History and Consideration .................................................................. 2 

Committee Votes ...................................................................................................... 2 

Committee Oversight Findings ............................................................................... 3 

New Budget Authority and Tax Expenditures ...................................................... 3 

Congressional Budget Office Cost Estimate .......................................................... 3 

Performance Goals and Objectives ......................................................................... 4 

Advisory of Earmarks .............................................................................................. 4 

Duplication of Federal Programs ............................................................................ 4 

Disclosure of Directed Rulemakings ...................................................................... 4 

Federal Mandate Statement ................................................................................... 4 

Preemption Clarification ......................................................................................... 4 

Advisory Committee Statement .............................................................................. 5 

Applicability of Legislative Branch ........................................................................ 5 

Section-by-Section Analysis of Legislation ............................................................ 5 

Changes in Existing Law Made by the Bill, As Reported .................................... 5 


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PURPOSE OF LEGISLATION

H.R. 4156, the ‘‘Airfare Transparency Act of 2014,’’ clarifies that 

it is not an unfair or deceptive practice to state in an advertisement or solicitation the base fare for passenger air transportation 

as long as the government-imposed taxes and fees and the total 

cost of the air transportation are clearly and separately disclosed 

in the advertisement or solicitation. 

BACKGROUND AND NEED FOR LEGISLATION

Virtually all consumer products are sold at a base price, with 

taxes added on at the point of purchase. However, in January 2012, 

the United States Department of Transportation (DOT) fundamentally changed U.S. airline advertising practices by implementing a 

rule that prohibits air carriers and ticket agents from providing full 

disclosure of government imposed taxes and fees in advertised 

prices. DOT’s previous advertising rules had been in effect for 25 

years. The DOT’s 2012 advertising rule requires air carriers and 

ticket agents to include all government imposed taxes and fees in 

the advertised price of a ticket. As a result, government imposed 

taxes and fees may not always be apparent to the traveling public. 

H.R. 4156 will allow air carriers and ticket agents to display the 

actual cost of air travel in a clear and transparent way—enabling 

passengers to see the base airfare as well as the government-imposed taxes and fees. It does this by amending section 41712 of 

title 49, United States Code, to clarify that it is not an unfair or 

deceptive practice to display, in an advertisement or solicitation, 

the base fare for the air transportation as long as the taxes, fees 

and total cost are clearly and separately disclosed in the advertisement or solicitation. 

HEARINGS

No hearings were held on H.R. 4156. 

LEGISLATIVE HISTORY AND CONSIDERATION

On March, 6, 2014, Rep. Bill Shuster introduced H.R. 4156, along 

with original cosponsors Representatives Peter DeFazio, Tom 

Graves, Rick Larsen, Frank LoBiondo, and Nick Rahall. 

On April 9, 2014, the Committee on Transportation and Infrastructure met in open session and ordered the bill reported favorably to the House by voice vote with a quorum present. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires each committee report to include the total number of 

votes cast for and against on each record vote on a motion to report 

and on any amendment offered to the measure or matter, and the 

names of those members voting for and against. There were no 

record votes taken in connection with consideration of H.R. 4156 or 

ordering the measure reported. A motion to order H.R. 4156 reported favorably to the House was agreed to by voice vote with a 

quorum present. 


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COMMITTEE OVERSIGHT FINDINGS

With respect to the requirements of clause 3(c)(1) of rule XIII of 

the Rules of the House of Representatives, the Committee’s oversight findings and recommendations are reflected in this report. 

NEW BUDGET AUTHORITY AND TAX EXPENDITURES

Clause 3(c)(2) of rule XIII of the Rules of the House of Representatives does not apply where a cost estimate and comparison prepared by the Director of the Congressional Budget Office under section 402 of the Congressional Budget Act of 1974 has been timely 

submitted prior to the filing of the report and is included in the report. Such a cost estimate is included in the report. 

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

With respect to the requirement of clause 3(c)(3) of rule XII of 

the Rules of the House of Representatives and section 402 of the 

Congressional Budget Act of 1974, the Committee has received the 

enclosed cost estimate for H.R. 4156 from the Director of the Congressional Budget Office: 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, April 18, 2014. 

Hon. BILL SHUSTER, 

Chairman, Committee on Transportation and Infrastructure, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 4156, the Transparent 

Airfares Act of 2014. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Megan Carroll. 

Sincerely, 

DOUGLAS W. ELMENDORF. 

Enclosure. 

H.R. 4156—Transparent Airfares Act of 2014 

H.R. 4156 would require the Department of Transportation 

(DOT) to promulgate a rule related to how prices for certain types 

of air transportation are advertised. Under current policies, DOT 

requires that advertised prices for air travel reflect the total price 

per passenger to be paid by customers, including government-imposed taxes and fees. Under H.R. 4156, sellers of air transportation 

could instead advertise base airfares, provided that advertisements 

also disclose the amount of additional government-imposed taxes 

and fees that customers would pay. 

CBO estimates that enacting H.R. 4156 would have no significant effect on the federal budget. Based on information from DOT 

we estimate that any costs incurred to complete the proposed rulemaking, which would be subject to the availability of appropriated 

funds, would be insignificant. H.R. 4156 would not affect direct 

spending or revenues; therefore, pay-as-you-go procedures do not 

apply. 


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H.R. 4156 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

impose no costs on state, local, or tribal governments. 

The CBO staff contact for this estimate is Megan Carroll. The estimate was approved by Theresa Gullo, Deputy Assistant Director 

for Budget Analysis. 

PERFORMANCE GOALS AND OBJECTIVES

With respect to the requirement of clause 3(c)(4) of rule XIII of 

the Rules of the House of Representatives, the performance goal 

and objective of this legislation is to restore transparency to airline 

advertising by clarifying that it is not an unfair or deceptive practice to display, in an advertisement or solicitation, the base fare for 

the air transportation as long as the taxes, fees and total cost are 

clearly and separately disclosed in the advertisement or solicitation. 

ADVISORY OF EARMARKS

Pursuant to clause 9 of rule XXI of the Rules of the House of 

Representatives, the Committee is required to include a list of congressional earmarks, limited tax benefits, or limited tariff benefits 

as defined in clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of 

the House of Representatives. No provision in the bill includes an 

earmark, limited tax benefit, or limited tariff benefit under clause 

9(e), 9(f), or 9(g) of rule XXI. 

DUPLICATION OF FEDERAL PROGRAMS

Pursuant to section 3(j) of H. Res. 5, 113th Cong. (2013), the 

Committee finds that no provision of H.R. 4156 establishes or reauthorizes a program of the Federal government known to be duplicative of another Federal program, a program that was included in 

any report from the Government Accountability Office to Congress 

pursuant to section 21 of Public Law 111–139, or a program related 

to a program identified in the most recent Catalog of Federal Domestic Assistance. 

DISCLOSURE OF DIRECTED RULEMAKINGS

Pursuant to section 3(k) of H. Res. 5, 113th Cong. (2013), the 

Committee estimates that enacting H.R. 4156 would require the 

Secretary of Transportation, not later than 120 days after enactment, to issue final regulations to carry out the amendment made 

to section 41712 of title 49, United States Code. 

FEDERAL MANDATE STATEMENT

The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office 

pursuant to section 423 of the Unfunded Mandates Reform Act 

(Public Law 104–4). 

PREEMPTION CLARIFICATION

Section 423 of the Congressional Budget Act of 1974 requires the 

report of any Committee on a bill or joint resolution to include a 

statement on the extent to which the bill or joint resolution is inVerDate Mar 15 2010 22:58 Jul 25, 2014 Jkt 039006 PO 00000 Frm 00004 Fmt 6659 Sfmt 6602 E:\HR\OC\HR554.XXX HR554

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tended to preempt state, local, or tribal law. The Committee states 

that H.R. 4156 does not preempt any state, local, or tribal law. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act are created by this legislation. 

APPLICABILITY OF LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act (Public Law 104–1). 

SECTION-BY-SECTION ANALYSIS OF LEGISLATION

Section 1. Short title is the ‘‘Transparent Airfares Act of 2014’’ 

Section 2. Full fare advertising 

Subsection (a) amends section 41712 of title 49, United States 

Code to clarify that it is not an unfair or deceptive practice to state 

in an advertisement or solicitation for passenger air transportation 

the base fare for the air transportation as long as the government 

imposed taxes and fees and total cost are clearly and separately 

disclosed in the advertisement or solicitation. This subsection also 

sets forth how the disclosure should be accomplished and defines 

the terms ‘‘base airfare’’ and ‘‘covered entity’’. 

Subsection (b) clarifies that air carriers and ticket agents must 

still disclose the total cost of the air transportation, including government imposed taxes and fees, prior to the purchase of the ticket. 

Subsection (c) requires the Secretary of Transportation to issue 

final regulations carrying out the amendment in subsection (a) not 

later than 120 days after enactment. 

Subsection (d) sets forth the effective date of the amendments 

and Act. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (new matter is printed in italic 

and existing law in which no change is proposed is shown in 

roman): 

TITLE 49, UNITED STATES CODE 

* * * * * * * 

SUBTITLE VII—AVIATION PROGRAMS 

* * * * * * * 

PART A—AIR COMMERCE AND SAFETY 

* * * * * * * 


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SUBPART II—ECONOMIC REGULATION 

* * * * * * * 

CHAPTER 417—OPERATIONS OF CARRIERS 

* * * * * * * 

SUBCHAPTER I—REQUIREMENTS 

* * * * * * * 

§ 41712. Unfair and deceptive practices and unfair methods 

of competition 

(a) * * * 

* * * * * * * 

(d) FULL FARE ADVERTISING.— 

(1) IN GENERAL.—It shall not be an unfair or deceptive practice under subsection (a) for a covered entity to state in an advertisement or solicitation for passenger air transportation the 

base airfare for the air transportation if the covered entity 

clearly and separately discloses— 

(A) the government-imposed taxes and fees associated 

with the air transportation; and 

(B) the total cost of the air transportation. 

(2) FORM OF DISCLOSURE.— 

(A) IN GENERAL.—For purposes of paragraph (1), the information described in paragraphs (1)(A) and (1)(B) shall 

be disclosed in the advertisement or solicitation in a manner that clearly presents the information to the consumer. 

(B) INTERNET ADVERTISEMENTS AND SOLICITATIONS.—For 

purposes of paragraph (1), with respect to an advertisement 

or solicitation for passenger air transportation that appears 

on an Internet Web site, the information described in paragraphs (1)(A) and (1)(B) may be disclosed through a link 

or pop-up, as such terms may be defined by the Secretary, 

that displays the information in a manner that is easily accessible and viewable by the consumer. 

(3) DEFINITIONS.—In this subsection, the following definitions 

apply: 

(A) BASE AIRFARE.—The term ‘‘base airfare’’ means the 

cost of passenger air transportation, excluding governmentimposed taxes and fees. 

(B) COVERED ENTITY.—The term ‘‘covered entity’’ means 

an air carrier, including an indirect air carrier, foreign 

carrier, ticket agent, or other person offering to sell tickets 

for passenger air transportation or a tour or tour component that must be purchased with air transportation. 

* * * * * * * 

Æ 


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