[Congressional Record Volume 160, Number 123 (Friday, August 1, 2014)]
[Extensions of Remarks]
[Pages E1318-E1319]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    TRANSPARENT AIRFARES ACT OF 2014

                                 ______
                                 

                               speech of

                          HON. HENRY A. WAXMAN

                             of california

                    in the house of representatives

                         Monday, July 28, 2014

  Mr. WAXMAN. Mr. Speaker, I rise to submit the following letters into 
the record with regard to the debate on H.R. 4156.

                                               Consumer Federation


                                                    of America

                                                     July 18, 2014
       Dear Representative: Consumer Federation of America, a 
     nonprofit association of consumer organizations around the 
     country that represent the interests of millions of your 
     constituents, urges you to reject HR. 4156, the Transparent 
     Airline Act of 2014. This bill may be taken up on the 
     suspension calendar, but at whatever point it is presented, 
     we ask you to oppose it.
       There is nothing transparent, or pro-consumer, about this 
     bill. It would allow airlines to advertise fares that do not 
     include the mandatory taxes, hiding the true cost until 
     consumers reach the end of the purchase process. This would 
     make the cost of airline tickets appear artificially low and 
     prevent budget-conscious consumers from determining upfront 
     whether they can afford to fly and how the cost of doing so 
     compares to other options, such as traveling to their 
     destinations by train or car.
       The argument that consumers are entitled to know how much 
     of the ticket price is comprised of taxes is totally 
     disingenuous--that breakdown does show before consumers 
     complete their purchases. Unlike charges for things such as 
     checked baggage and extra legroom, however, taxes are not 
     optional. Therefore, consumers do not base their air travel 
     decisions on the amount of the taxes, which are standardized. 
     Just as with buying gasoline, they shop for airline tickets 
     based on the total cost including taxes. They are entitled to 
     know that cost at the onset.
       Please stand with the traveling public in supporting real 
     truth in airfares by rejecting H.R. 4156.
           Sincerely yours,
                                                      Susan Grant,
     Director of Consumer Protection.
                                  ____


         July 15--Consumer Groups' Letter to U.S. House Members

       Dear Members of the U.S. House of Representatives: We the 
     undersigned consumer groups have learned that highly 
     controversial H.R. 4156, the Transparent Airfares Act of 
     2014, is on the short list in the House for possible 
     inclusion on the Suspension Calendar prior to the August 
     recess. H.R. 4156 is contentious legislation that would harm 
     millions of consumers by reversing a U.S. Department of 
     Transportation (DOT) rule implemented in 2012 as a cure to 
     misleading airline advertising. We urge you to strongly 
     object to the inclusion of H.R. 4156 on the Suspension 
     Calendar.
       Consumer groups were not alerted to the prospect of this 
     legislation, nor were we provided any opportunity for input 
     before Committee markup. H.R. 4156 was rushed by voice vote 
     through the House Transportation Committee on April 9, 2014 
     after just 9 minutes of discussion. There were no hearings, 
     no outreach for public opinion. This rushed process has 
     denied other stakeholders an opportunity to inform Congress 
     of their views and the flaws in this bill.
       Now, after steamrollering the bill through Committee, 
     airlines hope to rush the bill through the House under 
     Suspension of the Rules. But this is not the type of 
     unobjectionable proposal that the Suspension Calendar is 
     designed for; rather, it is harmful and controversial 
     special-interest legislation. There is not one consumer group 
     or business travel organization that supports this 
     legislation; most have publicly criticized both the bill and 
     the rushed process.
       This anti-consumer legislation serves no purpose, in our 
     view, other than to mislead consumers about the real price of 
     airfare--to the benefit of airlines, but at the expense of 
     consumers.
       Indeed, The New York Times Editorial Board on April 22 
     criticized the bill in an editorial saying: ``This push to 
     mislead consumers is particularly galling since recent 
     mergers, like that of American Airlines and US Airways, have 
     made the industry less competitive.'' Likewise, The 
     Washington Post reported on April 24: ``Consumers have 
     reacted to this bill in the same way their advocates have: 
     They're dead-set against it.''
       We urge you to stand up against this anti-consumer move by 
     the airlines and to ask House leadership not to schedule this 
     highly controversial bill for the Suspension Calendar, and 
     instead insist on a fair opportunity for travel industry and 
     consumer groups' input and proper deliberation.
           Sincerely,
       AirlinePassengers.org, Association for Airline Passenger 
     Rights, Business Travel Coalition, Consumers Union, Ed 
     Perkins, Consumer Advocate, FlyersRights.org, National 
     Consumers League, Travelers United, U.S. PIRG.
                                  ____



                                       Travelers United, Inc.,

                                     Arlington, VA, July 30, 2014.
       Dear Representative: I write to outline the harm the 
     Airfare Transparency Act (HR 4156) will cause for passengers, 
     travel agencies and corporate travel managers. And, to 
     highlight the strong opposition to this legislation from 
     consumers, the aviation distribution industry and corporate 
     travel managers.
       HR 4156 is completely unnecessary for its proposed impact.
       Under this bill aviation will become the only industry in 
     American permitted to add federal excise taxes and fees at 
     the end of the ticket buying process, just like local taxes 
     and fees.
       HR 4156 will enshrine drip pricing into law, a form of 
     deceptive and misleading pricing that has long been battled 
     by the FTC and DOT.
       This legislation makes understanding airfares less 
     transparent, more confusing and misleading.
       Airlines and their unions claim that this bill is necessary 
     to ensure passengers know ``exactly how much of their ticket 
     price is attributable to federal taxes and fees while at the 
     same time knowing the full price of air travel before they 
     purchase a ticket.''
       The current DOT rules allow for airlines to do exactly 
     that. Specific language in the regulation codifies how that 
     can be done. Plus, airlines have many other opportunities to 
     clearly outline taxes and fees paid when purchasing tickets. 
     Airlines can explain taxes and fees on ticket itineraries. 
     Airlines can print taxes and fees on boarding passes along 
     with Sudoko games and the weather. However, airlines choose 
     not to do this.
       When airlines claim that they are the unjustly subjected to 
     revealing federal excise taxes prior to purchase, they are 
     wrong. Every other industry in the U.S. that is subjected to 
     federal excise taxes and federal fees includes those costs in 
     the product price. These include gasoline, liquor, beer, 
     tires, trucks and others. The taxes and fees that other 
     transportation and travel entities add to the final prices 
     are state and local taxes and fees--airlines are exempt from 
     those taxes.
       The only part of this bill that would change what can be 
     done under the current DOT full-fare regulations is the 
     misleading and deceptive ability to advertise incomplete low 
     prices for which no consumer can purchase air travel.
       HR 4156 makes airfares more difficult to understand and 
     purchase. It was passed out of committee and under suspension 
     of rules with no consumer input and no consultation with the 
     airline distribution network of travel agents and corporate 
     travel managers that deal with the public on a day-by-day 
     basis.
       This bill has been opposed by far more than a few ``talking 
     heads.''
       Almost every major newspaper has opposed HR 4156 in 
     editorials or articles over the past few months. The papers 
     and magazines include The New York Times, Washington Post, 
     USA Today, Chicago Tribune, Time Magazine, and many others. A 
     change.org petition garnered more than 127,000 signatures 
     specifically opposing this bill.
       Major consumer organization, in addition to Travelers 
     United (formerly Consumer Travel Alliance), have aligned to 
     oppose this legislation. These organization include AAA, 
     Association for Airline Passenger Rights, Business Travel 
     Coalition, Consumer Federation of America, Consumers Union, 
     Ed Perkins (Consumer Advocate), FlyersRights.org, National 
     Consumers League and U.S. PIRG.
       This legislation undoes years of hard work by advocates to 
     ensure that consumers are not duped when purchasing airfare. 
     Transparency cannot be achieved through confusion.
           Sincerely,
                                                   Charlie Leocha,
                                                         Chairman.

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