Federal Court Halts New Airline Fee Disclosure Rule
The Biden administration's regulation aimed at increasing transparency faces legal challenges from major airlines.
- A U.S. appeals court temporarily blocked the Department of Transportation's rule requiring upfront disclosure of airline fees.
- The rule mandated airlines to reveal fees for services like checked bags and reservation changes alongside ticket prices.
- The court ruled that the regulation likely exceeds the DOT's authority and could irreparably harm airlines.
- Airlines argued that the rule would confuse consumers and require costly website overhauls.
- The case will proceed to further hearings, with the DOT defending the rule as a consumer protection measure.