On January 30, 2012, Rep. Tom Graves (R-Ga.) introduced H.R. 3867 -- Travel Transparency Act, which would reverse the portion of the Department of Transportation (DOT) Final Rule requiring airlines and ticket agents to quote fares that include all government mandated taxes and additional airline fees (“requirement”). This requirement went into effect January 26, 2012, but created controversy in the industry concerning its impact on airlines, travel agents and consumers.
The bill seeks to label the failure to clearly and separately disclose the base airfare, taxes, and fees as an “unfair or deceptive [advertising] practice.” Instead, The Travel Transparency Act states that passengers have the right to a clear, separate disclosure of the fees and taxes they pay on each airline ticket.
Rep. Graves states that “The federal government should not be inserting itself in the private sector to limit consumers’ ability to see how much they’re getting taxed. If the American people can’t see these costs clearly, I fear it will be easier these fees and taxes to be raised without their knowledge.” However, DOT Spokesperson Justin Nisly states that the requirement does not prevent airlines from listing taxes and fees separately, as long as the top number includes every mandatory tax and fee.
For further information or questions concerning the impact of this new legislation, please contact Glenn Wicks or Ronce Almond at (202) 457-7790.