Prompt Refunds for Cancelled Flights Act
Bill: H.R.9636 | Sponsor: Rep. Porter, Katie (D-CA)
Policy area: Transportation and Public Works

Summary:
Prompt Refunds for Cancelled Flights Act
This bill provides that it shall be an unfair or deceptive practice for an air carrier, foreign air carrier, or ticket agent who sells a ticket for air transportation to fail to provide a refund with respect to such ticket if the air transportation is cancelled or significantly changed. It does not apply to a ticket holder who voluntarily accepts alternative transportation or other compensation offered in lieu of a refund.

To amend title 49, United States Code, to ensure prompt refunds for 
               cancelled flights, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Prompt Refunds for Cancelled Flights 
Act''.

SEC. 2. PROMPT REFUNDS FOR CANCELLED FLIGHTS.

    (a) Unfair and Deceptive Practices and Unfair Methods of 
Competition.--Section 41712 of title 49, United States Code, is amended 
by adding at the end the following:
    ``(d) Prompt Refunds for Cancelled Flights.--
            ``(1) In general.--It shall be an unfair or deceptive 
        practice under subsection (a) for any air carrier, foreign air 
        carrier, or ticket agent that sells a ticket for air 
        transportation to fail to provide a covered refund with respect 
        to such ticket if the air transportation is cancelled or 
        significantly changed.
            ``(2) Exclusion.--Paragraph (1) does not apply if a ticket 
        holder voluntarily accepts alternative transportation or other 
        compensation offered in lieu of a covered refund.
            ``(3) Definitions.--In this subsection:
                    ``(A) Covered refund.--The term `covered refund' 
                means a refund of the amount paid for a ticket for air 
                transportation that is provided--
                            ``(i) to the holder of the ticket;
                            ``(ii) in the same format in which the 
                        amount was paid; and
                            ``(iii) not later than--
                                    ``(I) in the case of payment by 
                                credit card, debit card, or other 
                                electronic format, 48 hours after the 
                                relevant cancellation or significant 
                                change; or
                                    ``(II) in the case of payment by 
                                cash or check, 14 days after the 
                                relevant cancellation or significant 
                                change.
                    ``(B) Significantly changed.--The term 
                `significantly changed' means, with respect to air 
                transportation, that--
                            ``(i) the departure or arrival time 
                        associated with such transportation has 
                        changed--
                                    ``(I) in the case of air 
                                transportation within the United 
                                States, by 3 or more hours; or
                                    ``(II) in the case of air 
                                transportation to or from a location 
                                outside the United States, by 6 or more 
                                hours;
                            ``(ii) the departure or arrival airport 
                        associated with such transportation has 
                        changed;
                            ``(iii) the number of intermediate stops 
                        associated with such transportation has 
                        increased; or
                            ``(iv) the type of aircraft associated with 
                        such transportation has changed and, as 
                        determined by the Secretary, the change will 
                        result in a significant downgrade of the air 
                        transportation experience.''.
    (b) Civil Penalties.--Section 46301(a) of title 49, United States 
Code, is amended by adding at the end the following:
    ``(8) Penalty for Failure To Provide Covered Refund.--
Notwithstanding paragraphs (1) and (5)(D), the amount of a civil 
penalty for a violation of section 41712(d) shall be the amount that is 
10 times the amount paid for the relevant cancelled or significantly 
changed air transportation.''.
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