Fair Fees Act

Regulatory or Legal Changes Top 1

Carrier Cash Refund Mandate for Cancellations and Delays

Requires airlines to issue full cash refunds — including taxes and fees — when a flight is canceled or arrives significantly late, and passengers decline rebooking. Refunds must be issued within 7 business days for credit card purchases or 20 days for other payments. Directs the Department of Transportation (DOT) to issue rules within one year extending passenger refund requirements to ticket agents, and to require airlines to promptly transfer funds to ticket agents responsible for issuing refunds when the agent lacks the passenger's money. Gives airline passengers the right to cancel their ticket and receive a full cash refund — including taxes and fees — if they cancel at least 48 hours before departure. Airlines must refund within 30 days and disclose this right in writing before purchase. Airlines may offer vouchers or credits instead of cash refunds only if the offer clearly discloses the passenger's right to choose cash and the voucher has no expiration date. Vouchers that carry expiry dates or hidden terms are prohibited as substitutes for refunds. Makes each violation of the airline refund requirements subject to an existing civil penalty under federal aviation law. Airlines, foreign carriers, covered carriers, and ticket agents all face per-violation penalties for failing to comply.

• Population Scope High Any U.S. air traveler — a very large share of the adult population — is directly covered by refund rights triggered by cancellations, significant delays, or passenger-initiated cancellations 48+ hours before departure.
• Budgetary Magnitude Low No funds are authorized or appropriated; the bill imposes obligations on private carriers and ticket agents, not on the federal treasury.
• Legal / Regulatory Depth High Creates a new statutory entitlement to cash refunds enforceable against airlines and ticket agents, supplanting carrier discretion over compensation with a binding federal mandate and an explicit private choice right.
• Degree of Discretion Granted Medium Primary refund obligations are mandatory ('shall'), but the Secretary of Transportation (DOT) retains delegated rulemaking authority to extend and specify requirements for ticket agents, leaving meaningful implementation discretion to the agency.
• Implementation & Enforcement Burden High Imposes recurring, case-by-case compliance obligations on all covered airlines, foreign carriers, and ticket agents — including notification system updates, strict refund timelines, and per-violation civil penalties under existing federal aviation law.
• Temporal Commitment High Amends a standing provision of Title 49 with no expiration date or reauthorization requirement, binding carriers and agencies indefinitely unless Congress acts to repeal or modify it.