Document ID: DOT-OST-2022-0089-5311
Agency: dot
Document Type: Proposed Rule
Title: Airline Ticket Refunds and Consumer Protections
Posted Date: 2023-03-03T05:00Z

[Federal Register Volume 88, Number 42 (Friday, March 3, 2023)]
[Proposed Rules]
[Pages 13387-13389]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-04494]

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DEPARTMENT OF TRANSPORTATION

Office of the Secretary

14 CFR Parts 259, 260, and 399

[Docket No. DOT-OST-2022-0089]
RIN 2105-AF04

Airline Ticket Refunds and Consumer Protections; Public Hearing

AGENCY: Office of the Secretary (OST), U.S. Department of 
Transportation (DOT).

ACTION: Public hearing.

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SUMMARY: DOT is announcing a virtual public hearing pursuant on certain 
issues related to the U.S. Department of Transportation's Notice of 
Proposed Rulemaking on Airline Ticket Refunds and Consumer Protections.

DATES: The virtual hearing will be held on March 14, 2023, from 1 p.m. 
to 5 p.m. Eastern Time. The hearing is open to the public, subject to 
any technical and/or capacity limitations. Requests to attend the 
hearing must be submitted to https://usdot.zoomgov.com/webinar/register/WN_u2RfGmWTSICqQVUyz9TAXA. We encourage interested parties to 
register by Thursday, March 9, 2023. Communication Access Real-time 
Translation (CART) and sign language interpretation will be provided 
during the hearing. Requests for additional accommodations because of a 
disability must be received at [email protected] by Thursday, 
March 9, 2023.

ADDRESSES: The virtual hearing will be open to the public and held via 
the Zoom Webinar Platform. Virtual attendance information will be 
provided upon registration. An agenda will be available on the 
Department's Office of Aviation Consumer Protection website at https://www.transportation.gov/airconsumer/latest-news in advance of the 
hearing.

FOR FURTHER INFORMATION CONTACT: To register and attend this virtual 
hearing, please use the link: https://usdot.zoomgov.com/webinar/register/WN_u2RfGmWTSICqQVUyz9TAXA. Attendance is open to the public 
subject to any technical and/or capacity limitations. For further 
information, please contact Cristina Draguta, Attorney-Advisor, by 
email at [email protected].

SUPPLEMENTARY INFORMATION: 

I. Background

    On August 22, 2022, the U.S. Department of Transportation (DOT or 
Department) published in the Federal Register a notice of proposed 
rulemaking (NPRM) that proposes to

[[Page 13388]]

codify its longstanding interpretation that it is an unfair business 
practice for a U.S. air carrier, a foreign air carrier, or a ticket 
agent to refuse to provide requested refunds to consumers when a 
carrier has cancelled or made a significant change to a scheduled 
flight to, from, or within the United States, and consumers found the 
alternative transportation offered by the carrier or the ticket agent 
to be unacceptable (87 FR 51550). The NPRM proposes to define, for the 
first time, the terms significant change and cancellation. It would 
also require U.S. and foreign airlines and ticket agents inform 
consumers that they are entitled to a refund if that is the case before 
making an offer for travel credits, vouchers, or other compensation in 
lieu of refunds. The Department further proposes to require that U.S. 
and foreign air carriers and ticket agents provide non-expiring travel 
vouchers or credits to consumers holding non-refundable tickets for 
scheduled flights to, from, or within the United States who are unable 
to travel as scheduled in certain circumstances related to a serious 
communicable disease. If the carrier or ticket agent received 
significant financial assistance from the government because of a 
public health emergency, the Department proposes to require U.S. and 
foreign air carriers and ticket agents provide refunds, in lieu of non-
expiring travel vouchers or credits. The NPRM proposes to allow 
carriers and ticket agents to require consumers provide evidence to 
support their assertion of entitlement to a travel voucher, credit, or 
refund. The comment period for the NPRM closed on December 16, 2022.
    On December 16, 2022, Airlines for America (A4A) and International 
Air Transport Association (IATA) (collectively ``Petitioners'') filed a 
petition to request a public hearing on the NPRM pursuant to the 
Department's regulation on rulemakings relating to unfair and deceptive 
practices, 14 CFR 399.75.\1\ The Petitioners specifically raise three 
issues regarding the NPRM and request that these issues be addressed in 
the hearing. For each issue, Petitioners argue that it meets the 
threshold set forth in section 399.75 for granting a public hearing 
because the underlying proposed rule depends on conclusions concerning 
one or more specific scientific, technical, economic, or other factual 
issues that are genuinely in dispute; because the ordinary public 
comment process is unlikely to provide an adequate examination of the 
issue to permit a fully informed judgement; because the resolution of 
the disputed factual issues would likely have a material effect on the 
costs and benefits of the proposed rule; because the requested hearing 
on the issue would advance the consideration of the proposed rule and 
the General Counsel's ability to make the rulemaking determinations 
required by the Department's regulation; and because granting the 
petition would not unduly delay the rulemaking.
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    \1\ See, Airlines for America and the International Air 
Transport Association Petition for Hearing, https://www.regulations.gov/comment/DOT-OST-2022-0089-5296.
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    The Department has carefully considered the petition for a public 
hearing consistent with 14 CFR 399.75 and is granting a public hearing 
to afford Petitioners and other stakeholders an opportunity, in 
addition to the public comment process afforded by the NPRM, to present 
factual issues that they believe are pertinent to the Department's 
decision on the rulemaking. The scope of the hearing is limited to the 
factual issues specified in this notice.
    The Department's proposals are set forth in the August 2022 NPRM. 
The three issues identified by Petitioners concerning the Department's 
NPRM and on which they request a hearing are discussed in more detail 
in their petition for rehearing. The information the Department is 
requesting during the hearing on these issues is summarized below.

Issue 1: Whether Consumers Can Make Reasonable Self-Determinations 
Regarding Contracting a Serious Communicable Disease

    The Department requests interested parties to provide the following 
information to the extent it has not been provided in any written 
comments already submitted to the Docket:
     Information on airlines' and ticket agents' current 
practice in handling consumers' requests for the cancellation or 
postponement of travel due to contracting a serious communicable 
disease, including a description of the procedure to review the 
requests, information on the evidentiary documentation required, if 
any, and the accommodations provided in response to legitimate claims 
(e.g., refunds, credits, rebooking);
     Data on the volume of such requests, both pre- and during 
the COVID-19 public health emergency;
     Information on the volume and percentage of requests from 
consumers that are considered fraudulent;
     Information on the volume and percentage of requests 
received that are not considered fraudulent but nonetheless rejected 
due to being based on ``unreasonable self-determination;''
     Data on the costs to airlines and ticket agents to verify 
consumers' claims regarding contracting a serious communicable disease;
     Information on the type of diseases claimed by consumers 
as a ``serious communicable disease'' based on which the consumers are 
requesting to cancel or postpone travel; and
     Any other information pertinent to the Department's 
determination on this proposal.

Issue 2: Whether the Documentation Requirement (Medical Attestation 
and/or Public Health Guidance) Is Sufficient To Prevent Fraud

    The Department welcomes the following information during the 
hearing, to the extent it has not been provided in any written comments 
already submitted to the Docket:
     Information on whether medical attestations currently 
provided to airlines from consumers seeking to cancel or postpone 
travel are primarily based on consumers' self-assessments, the medical 
professionals' assessments, or a combination of both;
     Information on the types of medical professionals who are 
currently providing the attestations that are accepted by airlines and 
ticket agents;
     Information on the types of public health authority-issued 
guidance that are currently affecting air travel;
     Information on airlines' validation of medical 
attestations, including the procedures, the volume, and the costs 
associated with the validation; and
     Any other information pertinent to the Department's 
determination on this proposal.

Issue 3: How To Determine Whether a Downgrade of Amenities or Travel 
Experiences Qualifies as a ``Significant Change of Flight Itinerary''

    The Department requests that interested parties provide information 
on whether there are certain types of amenity changes that should be 
considered ``significant'' changes that would entitle a consumer to a 
refund and if so, whether the determination should be made 
categorically or by airlines on a case-by-case basis. The Department 
also requests information on how different airline operational and 
pricing models affect onboard amenities and travel experiences, and 
subsequently affect consumer expectations. In addition, the Department 
welcomes any other new information pertinent to the Department's 
determination on this proposal.

[[Page 13389]]

II. Agenda, Hearing Officer, and Post-Hearing Actions

    During the March 14, 2023, hearing, the Department will hear 
information from the public on the three subjects described above. The 
Department's tentative positions on these subjects are articulated in 
the NPRM. The Department does not expect to provide further summary or 
explanation on its positions at the hearing.
    The Department is appointing Blane Workie, Assistant General 
Counsel, Office of Aviation Consumer Protection, as the Hearing Officer 
presiding over the hearing. The Department's regulations at 14 CFR 
399.75 specify that the General Counsel shall arrange for a hearing 
officer to preside over the hearing. The regulations further provide 
that after the hearing process is complete, the General Counsel must 
consider the record of the hearing and make a reasoned determination 
whether to terminate the rulemaking, proceed with the rulemaking as 
proposed, or modify the proposed rule. The regulations further require 
the General Counsel to explain, in an appropriate rulemaking document 
published in the Federal Register, the rationale for the post-hearing 
decision made by the General Counsel. The rationale for the post-
hearing decision made by the General Counsel will be explained in any 
final rule or other appropriate rulemaking document issued by the 
Department for this action.

III. Public Participation

    The March 14, 2023, hearing will begin at 1:00 p.m. EDT, and the 
Department will provide time for opening remarks by the Hearing 
Officer. The meeting will then transition to public comments and 
presentations. Any oral comments presented should be limited to the 
subjects described in this Notice and be brief so all participants will 
have an opportunity to speak. Depending on the volume of requests for 
oral comments that we receive and the time available, we may be able to 
accommodate additional comments and/or presentations that speakers wish 
to add. Individual members of the public who wish to present oral 
comments must notify the Department of Transportation, no later than 
Thursday, March 9 via email at [email protected] that they wish to 
present oral comments. The email should (1) identify specific 
subject(s) on which you wish to provide comments; and (2) state the 
organization or entity you are representing or that you are speaking as 
a member of the public. All written materials (e.g., PowerPoint 
presentations) presented at the hearing will be made part of the 
meeting's record.
    Consistent with the requirement of 14 CFR 399.75, the Department 
plans to reopen the comment period for this rulemaking on March 14, 
2023, the date of the hearing, and the comment period will remain open 
for seven (7) days, closing on March 21, 2023. Interested parties who 
wish to file statements or comments that are specifically related to 
the subject(s) discussed at the hearing may submit their written 
comments electronically to the NPRM Docket (DOT-OST-2022-0089).
    After the hearing and after the record of the hearing is closed, 
the hearing officer will place on the rulemaking docket minutes of the 
hearing reflecting the evidence and arguments presented on the issues.

IV. Viewing Documents

    Documents associated with the NPRM on Airline Ticket Refunds and 
Consumer Protections may be accessed in the rulemaking Docket (DOT-OST-
2022-0089). Dockets may be accessed at https://www.regulations.gov. 
After entering the relevant docket number click the link to ``Open 
Docket Folder'' and choose the document to review.

    Signed in Washington, DC, on this 28th day of February 2023.
John E. Putnam,
General Counsel, U.S. Department of Transportation.
[FR Doc. 2023-04494 Filed 3-2-23; 8:45 am]
BILLING CODE 4910-9X-P