[Federal Register Volume 59, Number 21 (Tuesday, February 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-2199]


[[Page Unknown]]

[Federal Register: February 1, 1994]


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DEPARTMENT OF TRANSPORTATION
Office of the Secretary

14 CFR Ch. II

[Docket No. 49385; Notice 94-4]
RIN 2105-AC03

 

Special Event Tours

AGENCY: Office of the Secretary, DOT.

ACTION: Advance notice of proposed rulemaking.

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SUMMARY: The Department seeks comment on a tentative proposal to expand 
its rules on Super Bowl tours to cover air tours to other types of 
special events. These Super Bowl rules require that operators of Super 
Bowl tours that are promoted as including game tickets must have those 
game tickets in hand or under contract before they advertise or sell 
the tours, and that they must refund the entire tour price to any 
customer who does not receive a promised game ticket. This initiative 
arises as a result of problems on certain tours to the 1994 Rose Bowl 
on which participants did not receive game tickets that were promoted 
as being included in the package, or were required to make additional 
payments in order to receive tickets.

DATES: Comments should be received by March 28, 1994. Late-filed 
comments will be considered to the extent practicable.

ADDRESSES: Comments should be sent to Docket Clerk, Docket No. 49385, 
room 4107, Department of Transportation, 400 Seventh Street SW., 
Washington, DC 20590. For the convenience of persons who will be 
reviewing the docket, it is requested that commenters provide an 
original and one copy of their comments. Comments will be available for 
inspection at this address Monday through Friday from 9 a.m. through 
5:30 p.m. Commenters who wish the receipt of their comments to be 
acknowledged should include a stamped, self-addressed postcard with 
their comments. The docket clerk will date-stamp the postcard and mail 
it to the commenter.

FOR FURTHER INFORMATION CONTACT: Tim Kelly, Consumer Affairs Division, 
Office of the Secretary, Department of Transportation, 400 Seventh 
Street SW., room 10405, Washington, DC 20590. Telephone (202) 366-5952.

SUPPLEMENTARY INFORMATION: In conjunction with the Rose Bowl football 
game that was played in Pasadena, California on January 1, 1994, a 
large number of fans of the University of Wisconsin (one of the two 
teams participating in the game) purchased package tours to California. 
Many of those tours were promoted as including a ticket to the Rose 
Bowl game. However, a significant number of these individuals either 
did not receive the game tickets that they had been promised and did 
not gain admission to the game, or were required to make an additional 
payment after they arrived in Pasadena in order to obtain their 
tickets.
    The Department of Transportation has general authority under 
section 411 of the Federal Aviation Act (49 U.S.C. 1381) to take action 
against companies that engage in unfair or deceptive practices in 
connection with air transportation. The Department's staff, with 
cooperation and support from the State of Wisconsin's Department of 
Justice, is actively investigating the Rose Bowl matter and will pursue 
any violations found. However, we wish to consider the desirability of 
maximizing the deterrent effect of our rules against consumer deception 
where tickets to special events are sold in connection with air 
transportation, and significantly increasing consumer remedies in cases 
where the purpose of a consumer's trip is frustrated. Therefore, the 
Department seeks comment on a proposal to extend its rules on Super 
Bowl tours to include air tours to other types of special events where 
admission to the event is advertised as being included in the package.
    The Department's rules on Super Bowl charters are contained in 
title 14, part 380 of the Code of Federal Regulations (14 CFR part 
380):
     Section 380.2 defines a Super Bowl charter as a charter 
flight that is represented by its charter operator as including tickets 
to the National Football League's Super Bowl game as part of its ground 
package.
     Section 380.18a states that a Super Bowl charter may not 
be advertised unless the operator has submitted verification to the 
Department\1\ that the operator (1) is in physical possession of enough 
Super Bowl game tickets to provide them for a substantial number of 
seats on the charter, or (2) has a contract with the NFL or with an NFL 
team for such a number of game tickets, or (3) has a contract with 
another person who has a contract with the NFL or an NFL team for such 
a number of game tickets.
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    \1\References to ``the Board'' in this rule refer to the Civil 
Aeronautics Board, the Department's predecessor in aviation economic 
and consumer matters. The Department of Transportation now 
administers this rule as authorized by the Civil Aeronautics Board 
Sunset Act of 1984 (Pub. L. 98-443; 98 Stat. 1703).
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     Section 380.18a also states that a Super Bowl charter may 
not be sold unless the operator has submitted verification to the 
Department that the operator has possession of, or contracts for, 
enough game tickets to provide one to every person who is to receive 
one under the terms of the operator/participant contract for the 
charter.
     Section 380.31(c) states that if an operator receives a 
booking for which he or she does not have possession of or a contract 
for a game ticket, the operator must return that participant's money 
within three days, unless the participant has authorized the operator 
in writing to retain the payment while the operator seeks additional 
tickets.
     Sections 380.32(s), 380.33(a)(5) and 380.33(e) state that 
if Super Bowl game tickets are not supplied when promised, the affected 
participant must be sent a refund of the price of the entire charter 
package within 14 days after the return flight.
    These rules came about following problems with game tickets for 
Super Bowl tours in the late 1970's (see 45 FR 1856, Jan. 9, 1980). The 
rules were limited to the Super Bowl because that was the only event 
where such problems had surfaced.
    In addition to the Super Bowl rules in part 380, the Department has 
a policy statement at 14 CFR Sec. 399.87 which states that it shall be 
an unfair or deceptive practice within the meaning of section 411 of 
the Federal Aviation Act to advertise or sell an air tour that is 
promoted as including a ticket to the Super Bowl game unless the 
operator has tickets or contracts for tickets in the manner described 
in 14 CFR 380.18a (see above). The principal purpose of this policy 
statement is to reach tours operated on scheduled air service, which 
are not covered by the part 380 charter rules. The part 399 policy 
statement mirrors Sec. 380.18a, but does not include the other part 380 
provisions described above. Most importantly, it does not include the 
requirement that the entire tour price be refunded if a game ticket is 
not provided.
    The Department is tentatively proposing to issue a new rule that 
would contain the procedures of the Super Bowl provisions of both part 
380 and part 399, and to extend this rule to other types of events. 
Like current Sec. 399.87, the new rule would apply to tours on all 
forms of air transportation, not just charters. Like the existing Super 
Bowl charter rules in part 380, the new regulation would require the 
tour operator to refund the entire tour price to any participant who 
does not receive a promised event ticket, even if the tour were not on 
a charter. We anticipate that the new rule would also pick up the 
procedures of Sec. 380.31(c), which would require an operator to refund 
any money received for a booking within a certain limited period of 
time if the operator has no contract for an event ticket for that 
person, unless the person has authorized the operator in writing to 
retain the payment while the operator seeks a ticket.
    In concept, the new rule would apply to air tours that are 
advertised as including admission to a specific event. Beyond that, the 
Department seeks comment on what the scope of such a rule should be:
     Should it apply only to major sports events which would be 
listed in the rule (for example, the Super Bowl, college bowl games, 
the NCAA Final Four, the World Cup finals, the Olympics)? To any sports 
event? To religious events (for instance, the Passion Play in 
Oberammergau)? To any event?
     Should the rule apply to both charter and scheduled 
transportation? Should it appear in part 380, in part 399, in a new 
rule in a separate part, or some combination of the above?
     Should the rule contain only the advertising and sale 
restrictions of Secs. 380.18a and 399.87, or should it also contain the 
``money back guarantee'' of Secs. 380.32 and 380.33 and/or the 
``booking rejection'' and ``contingent booking'' procedures of 
Sec. 380.31(c)?
     If the scope of the type of event covered by the rule (see 
first bullet) is broad and the rule contains the ``money back 
guarantee'' (see previous bullet), should procedures be included that 
would protect the operator from having to refund the entire tour price 
if a participant doesn't receive promised admission to something like a 
welcoming cocktail party? What types of procedures would accomplish 
this?
     Should the rule specifically ban last-minute or post-
departure price increases for admission to the event, one of the 
problems that allegedly occurred on the 1994 Rose Bowl tours? This type 
of problem is not addressed in the existing Super Bowl rules, although 
it may be actionable under section 411 of the Federal Aviation Act as 
an unfair or deceptive practice. On charters this phenomenon is covered 
to some extent by Sec. 380.33(b), which prohibits any increase in any 
charter price less than 10 days before departure. Should the new rule 
on special event tours contain such a requirement?
     Some tours are promoted in conjunction with a special 
event, but do not include, and do not represent that they include, 
admission to the event. For example, there have been tours to the Super 
Bowl host city during the Super Bowl weekend that prominently feature 
``Super Bowl'' in the headline of advertisements and flyers, but which 
do not include game tickets. Should the new rule ban this practice, or 
require affirmative, prominent disclosure that admission to the event 
is not included?
     What would be the economic burdens of such a rule? Would 
the rule be impractical for events where the participants are known 
only a week in advance, e.g. the NCAA Final Four?
    On September 16, 1992, the Department published a proposal to 
conduct a major overhaul of its air charter regulations, including part 
380; see 57 FR 42864. We proposed to eliminate many existing charter 
requirements, including the Super Bowl provisions of part 380. (Some of 
the proposed changes to part 380's Super Bowl provisions are discussed 
at page 42866 (column 3) of the proposal.) The proposal noted that 
Super Bowl tours, including those operated on charters, would continue 
to be subject to Sec. 399.87. In view of the problems with the 1994 
Rose Bowl, however, the Department now is of the tentative opinion that 
the approach taken in the existing Super Bowl charter provisions (e.g., 
the ``money back guarantee'' among other things) remains appropriate. 
If this tentative conclusion is finalized in the instant rulemaking on 
special event tours, Super Bowl charter tours (as well as charter tours 
to other special events) would remain subject to requirements similar 
to those in the current Super Bowl charter provisions. As indicated 
above, however, the Department seeks comment on whether this proposed 
new rule on special event tours should appear only in part 399 or a new 
part, or whether it should also appear in part 380.

Regulatory Analyses and Notices

    This ANPRM is considered to be a non-significant rulemaking under 
DOT regulatory policies and procedures, 44 FR 11034, because the 
proposal would have minimal economic impact, and accordingly no 
regulatory evaluation has been prepared. The ANPRM was not subject to 
review by the Office of Information and Regulatory Affairs pursuant to 
Executive Order 12866.
    The ANPRM has been analyzed in accordance with the principles and 
criteria contained in Executive Order 12612, and it has been determined 
that it does not have sufficient federalism implications to warrant the 
preparation of a Federalism Assessment.
    I certify that the proposal, if adopted, would not have a 
significant economic impact on a substantial number of small entities.

    Issued this 27th day of January 1994 at Washington, DC.
Patrick V. Murphy,
Acting Assistant Secretary for Policy and International Affairs.
[FR Doc. 94-2199 Filed 1-27-94; 3:13 pm]
BILLING CODE 4910-62-U