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The Big Story
Biden airline ‘junk fees’ rule goes down in court
A federal appeals court has temporarily blocked the Biden administration’s new rule that requires airline companies to disclose extra fees on purchases, a decision that Transportation Secretary Pete Buttigieg said left him “speechless.”
“We just issued a rule requiring airlines to inform you, before you buy a ticket, of fees they will charge you,” Buttigieg said in a social media post reacting to the news.
“Now, the airline lobby is suing us, saying that if you have the right to that information it will ‘confuse’ you. For once, I am speechless.”
A coalition of major airlines sued the Biden administration in May over the Department of Transportation’s (DOT) crackdown on junk fees in air travel. These extra fees can include charges for checked bags, carry-on bags and changing or canceling reservations.
Trade group Airlines for America filed the lawsuit alongside Delta Air Lines, American Airlines, United Airlines, JetBlue Airways Corp., Hawaiian Airlines and Alaska Airlines. The group argued that the new rule would “confuse” customers and “complicate” the purchasing process.
The department doubled down on its rule in a statement to The Hill on Tuesday, emphasizing that airlines can still “voluntarily” comply with the rule even with the court’s order.
“DOT will continue defending our rule that protects consumers from surprise fees that can unexpectedly jack up the price of air travel,” the department said. “Nothing in the Court’s decision prevents airlines from voluntarily complying with this common sense rule that simply requires them to keep their customers fully informed when buying a plane ticket.”
Welcome to The Hill’s Business & Economy newsletter, we’re Aris Folley and Taylor Giorno — covering the intersection of Wall Street and Pennsylvania Avenue.
The U.S. Consumer Product Safety Commission (CPSC) ruled on Tuesday that Amazon bears legal responsibility for the recall of more than 400,000 hazardous products sold on its website by third-party sellers that were packaged and shipped by the company.
Education The Association of American Publishers hired theGROUP DC to monitor issues pertaining to Inclusive Access programs, which allow universities to automatically bill students for textbooks and supplies. The Education Department in January proposed colleges could not automatically bill students, but rather students would have to opt into the program, a change opposed by the trade association, according to Inside Higher …
Vice President Harris has erased former President Trump’s lead in seven key battleground states roughly a week after becoming the likely Democratic nominee. Read more
Attorney General Merrick Garland defended his appointment of special counsel Jack Smith on Tuesday as the department appeals a ruling finding he was wrongly appointed, saying he wouldn’t make such a “basic mistake.” Read more
What People Think
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