Biden issues new rules for airlines to require automatic cash refunds, prohibit surprise fees

• The Biden administration announced new rules to require airlines to be more transparent about extra fees and to issue cash refunds automatically in certain cases.
• The provisions will be implemented on separate timelines ranging from six months to two years.
• Biden has made the crackdown on so-called corporate junk fees a centerpiece of his economic program to protect consumers.

The Biden administration on Wednesday unveiled two new rules that will directly affect the millions of Americans who fly commercially every year. The first rule requires airlines to be more transparent about extra fees. The second rule requires airlines to issue cash refunds automatically, rather than in response to customer requests.

The various provisions of the new rules, issued by the Department of Transportation, will be implemented on different timelines ranging from six months to two years.

"Passengers deserve to get their money back when an airline owes them — without headaches or haggling," Transportation Secretary Pete Buttigieg said in a press release on the new refund rule.

The rule mandates that airlines automatically give passengers their full money back in several cases: when flights are canceled or significantly changed, when baggage return is significantly delayed and when customers do not receive inflight amenities like Wi-Fi that they have paid for.

The other rule aims to eliminate so-called "surprise junk fees."

"Airlines should compete with one another to secure passengers' business — not to see who can charge the most in surprise fees," Buttigieg said.

It will require that airlines list and explain all extra fees "clearly, conspicuously, and accurately" on their web platforms or when they provide fare prices offline.

This