[Federal Register Volume 89, Number 155 (Monday, August 12, 2024)]
[Rules and Regulations]
[Pages 65534-65538]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-17602]


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DEPARTMENT OF TRANSPORTATION

Office of the Secretary

14 CFR Parts 259, 260, and 399

[Docket No. DOT-OST-2022-0089]
RIN 2105-AF04


Refunds and Other Consumer Protections (2024 FAA Reauthorization)

AGENCY: Office of the Secretary (OST), Department of Transportation.

ACTION: Final rule.

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SUMMARY: The U.S. Department of Transportation (Department or DOT) 
published a final rule on April 26, 2024, to establish requirements for 
refunds and other protections for consumers of air travel. Subsequent 
to publication of that final rule, the FAA Reauthorization Act of 2024 
(Act) was signed into law on May 16, 2024. This final rule amends the 
Department's regulations, as updated by the April 26, 2024, final rule, 
consistent with the requirements of the Act.

DATES: This rule is effective August 12, 2024.

FOR FURTHER INFORMATION CONTACT: Clereece Kroha or Blane Workie, Office 
of Aviation Consumer Protection, U.S. Department of Transportation, 
1200 New Jersey Ave. SE, Washington, DC 20590, 202-366-9342 (phone), 
[email protected] or [email protected] (email).

SUPPLEMENTARY INFORMATION:

Executive Summary

I. Purpose of the Regulatory Action

    The purpose of this final rule is to amend the Department's 
regulations for consistency with the Act, Public Law 118-63.

II. Background

    The Act was signed into law on May 16, 2024, after publication in 
the Federal Register of the Department's final rule titled ``Refunds 
and Other Consumer Protection.'' Section 503 of the Act, which is 
codified at 49 U.S.C. 42305, addresses refunds for cancelled or 
significantly delayed or changed flights. The requirements in Section 
503 concern several topics addressed in the Department's final rule.
    Subsection (a) of section 42305 requires that, for passengers \1\ 
that hold a nonrefundable ticket on a scheduled flight to, from, or 
within the United States, an air carrier or foreign air carrier provide 
a full refund of the fare (including any taxes and ancillary fees) the 
carrier collected for any cancelled or significantly delayed or changed 
flight if the passenger chooses not to fly on the significantly delayed 
or changed flight or accept rebooking on an alternative flight or 
accept any voucher, credit, or other form of compensation offered by 
the air carrier or foreign air carrier pursuant to subsection (c) of 
section 42305. The obligation for carriers to provide a refund is upon 
request as specified in subsection (f) of section 42305.
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    \1\ Note that the regulatory text uses the term ``consumer'' 
rather than ``passenger'' for consistency with use of this term 
throughout the Department's consumer protection regulations. No 
change in meaning is effectuated through use of the term 
``consumer''.
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    Subsection (f) specifies that an air carrier or foreign air carrier 
must consider a passenger to have requested a refund if one of the 
following criteria are met: (1) a flight is cancelled and the air 
carrier or foreign air carrier does not offer a passenger an 
alternative flight or any voucher, credit, or other form of 
compensation pursuant to subsection (c) of section 42305; (2) a 
passenger rejects the significantly delayed or changed flight, 
rebooking on an alternative flight, or any voucher, credit, or other 
form of compensation offered pursuant to subsection (c) of section 
42305; or (3) a passenger does not respond to an offer of either of the 
following: (A) a significantly delayed or changed flight or an 
alternative flight and the flight departs without the passenger; or (B) 
a voucher, credit, or other form of compensation by the date on which 
the cancelled flight was scheduled to depart

[[Page 65535]]

or the date that the significantly delayed or changed flight 
departs.\2\
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    \2\ In a letter dated July 3, 2024, Airlines for America (A4A) 
urges the Department to not interpret the Act as requiring airlines 
to treat a passenger's failure to respond to an offer of alternative 
transportation as a passenger's election to not fly on that flight. 
See, https://www.regulations.gov/document/DOT-OST-2022-0089-5346. 
Because the language in the Act would not allow the interpretation 
suggested by A4A, the Department does not adopt the requested 
interpretation.
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    Subsection (c) specifies the manner in which an air carrier or 
foreign air carrier could offer a voucher, credit, or other 
compensation as an explicit alternative to a refund. An air carrier or 
foreign air carrier can make such an offer only if the offer includes 
clear and conspicuous notice of the offer's terms and the passenger's 
right to a full refund. The alternative compensation must remain valid 
and redeemable for at least five years from the date of issuance and 
the recipient is notified of the expiration date. In addition, upon 
request of an individual who self-identifies as having a disability, 
the notice of the expiration date must be provided in an electronic 
format accessible to the recipient.
    The Act also defined a ``significantly changed or delayed flight'' 
in subsection (d) of section 42305 as a flight to include, at a 
minimum, a flight where the passenger arrives at the passenger's 
destination airport 3 or more hours after the original scheduled 
arrival time for a domestic flight and 6 or more hours after the 
original scheduled arrival time for an international flight.
    In subsection (b) of section 42305, the Act established 
requirements for the timing of the refunds required under subsection 
(a). Air carriers and foreign air carriers must issue refunds not later 
than 7 business days after the earliest date of the refund request, as 
specified in subsection (f), for tickets purchased with a credit card, 
and 20 days for tickets purchased with cash or another form of payment.
    Subsection (e) of section 42305 requires that the Department issue 
a rule to apply refund requirements to ticket agents for cancelled or 
significantly delayed or changed flights within 1 year of the date of 
enactment of the Act. Subsection (e) further requires the Department to 
issue regulations requiring air carriers and foreign air carriers to 
promptly transfer funds to a ticket agent if the Secretary determines 
that the ticket agent is responsible for providing the refund and the 
ticket agent does not possess the passenger's funds. Refunds provided 
by ticket agents pursuant to the Department's regulations must comply 
with the timelines specified in subsection (b)--7 business days for 
credit card purchases and 20 days for cash purchases and purchases made 
using other forms of payment--and the requirements for alternatives to 
a refund specified in subsection (c)--clear and conspicuous notice of 
the terms of the offer and the right to a refund, an expiration date of 
no less than 5 years, and notification of the expiration date, 
including for passengers that self-identify as having a disability.
    Subsection (g) of section 42305 requires air carriers and foreign 
air carriers to update their passenger notification systems to ensure 
passengers owed a refund are notified of that right.
    In this final rule, the Department amends its regulations in 14 CFR 
parts 259, 260, and 399, as originally added or amended by the final 
rule published on April 26, 2024, for consistency with the provisions 
of the Act as described in the preceding paragraphs. The Department 
also satisfies the rulemaking requirements of subsection (e) of 49 
U.S.C. 42305. The Department's April 2024 final rule meets the 
requirement of 42305(e)(1) for the Department to issue a final rule 
within 1 year of enactment applying refund requirements to ticket 
agents, and also includes the Department's determination of when a 
ticket agent is responsible for providing refunds.\3\ In this final 
rule, the Department also meets the requirement of 42305(e)(2) to issue 
regulations requiring air carriers and foreign air carriers to promptly 
transfer funds to a ticket agent if the Secretary determines that the 
ticket agent is responsible for providing the refund and the ticket 
agent does not possess the passenger's funds (see new Sec.  260.6(e)).
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    \3\ The Department specified in the April 2024 final rule that 
the merchant of record is the entity responsible for issuing the 
refund when due, which constitutes the Secretarial determination 
required under 49 U.S.C. 42305(e)(2).
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Compliance

    Under the Act, the compliance and effective date for certain 
requirements relating to ticket refunds due to airline cancellations or 
significant change is May 16, 2024. Because those provisions are self-
effectuating, the Department's expectation is that airlines comply with 
the provisions contained in the Act. Beyond those requirements that 
went into effect under the Act on May 16, 2024, this final rule does 
not change the compliance date of October 28, 2024, set forth in the 
Department's April 26 final rule for the requirements regarding ticket 
refunds due to airline cancellation or significant change, refunds of 
baggage fees for significantly delayed bags, and refunds of ancillary 
service fees when services are not provided. It also does not change 
the compliance date of April 25, 2025, set forth in the Department's 
April 26 final rule for the requirements regarding issuing travel 
credits or vouchers to passengers who are affected by a serious 
communicable disease.

Statutory Authority

    The Department is issuing this rulemaking pursuant to authority 
granted in the Act, Public Law 118-63. Because the Department is 
codifying the requirements of the Act in this final rule, and 
exercising no discretion in so doing, the Department has determined 
that prior notice and comment are unnecessary, and there is good cause 
to find that this rule is not subject to the notice and comment 
requirements pursuant to 5 U.S.C. 553(b)(B). For these same reasons, 
the Department also finds good cause to waive the 30-day delay in 
effective date under 5 U.S.C. 553(d) and make this regulation effective 
on August 12, 2024.

Regulatory Analyses and Notices

A. Executive Order 12866 (Regulatory Planning and Review) and DOT 
Regulatory Policies and Procedures and Executive Order 13653 (Improving 
Regulation and Regulatory Review)

    The final rule was determined not to be a significant regulatory 
action as defined in Executive Order (E.O.) 12866, ``Regulatory 
Planning and Review,'' as amended by E.O. 14094, ``Modernizing 
Regulatory Review.'' The rule was therefore not reviewed by the Office 
of Management and Budget pursuant to E.O. 12866.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980 (RFA) (5 U.S.C. 601, et 
seq.) requires Federal agencies to review and assess the impact on 
small entities of any regulation required by 5 U.S.C. 553 or any other 
law to be published as a proposed rule for public comment prior to 
issuance of a final rule. Because no notice of proposed rulemaking is 
required for this rule under the Administrative Procedure Act, 5 U.S.C. 
553, or any other law, the analytical provisions of the RFA do not 
apply.

C. Executive Order 13132 (Federalism)

    This final rule has been analyzed in accordance with the principles 
and criteria contained in Executive Order 13132 (``Federalism''). This 
rule, in which the Department codifies requirements imposed by statute, 
does not include any provision that: (1) has substantial direct effects 
on the States, the relationship between the national

[[Page 65536]]

government and the States, or the distribution of power and 
responsibilities among the various levels of government; (2) imposes 
substantial direct compliance costs on State and local governments; or 
(3) preempts State law. States are already preempted from regulating in 
this area by the Airline Deregulation Act, 49 U.S.C. 41713. Therefore, 
the consultation and funding requirements of Executive Order 13132 do 
not apply.

D. Executive Order 13175

    This final rule has been analyzed in accordance with the principles 
and criteria contained in Executive Order 13175 (``Consultation and 
Coordination with Indian Tribal Governments''). Because none of the 
provisions finalized in this rule would significantly or uniquely 
affect the communities of the Indian tribal governments or impose 
substantial direct compliance costs on them, the funding and 
consultation requirements of Executive Order 13175 do not apply.

E. Paperwork Reduction Act

    This final rule does not impose any new collection of information 
that would require approval by the Office of Management and Budget 
(OMB) under the Paperwork Reduction Act of 1995 (Pub. L. 104-13, 49 
U.S.C. 3501 et seq.).

F. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (UMRA) requires, at 2 
U.S.C. 1532, that agencies prepare an assessment of anticipated costs 
and benefits before issuing any rule that may result in the expenditure 
by State, local, and tribal governments, in the aggregate, or by the 
private sector, of $100 million or more (adjusted annually for 
inflation) in any one year. The Department has determined that this 
final rule, in which the Department codifies requirements of the Act 
will not have an effect on the private sector that exceeds this 
threshold. As a result, the analytical requirements of the UMRA do not 
apply to this final rule.

G. National Environmental Policy Act

    The Department has analyzed the environmental impacts of this 
action pursuant to the National Environmental Policy Act of 1969 (NEPA) 
(42 U.S.C. 4321 et seq.) and has determined that it is categorically 
excluded pursuant to DOT Order 5610.1C, Procedures for Considering 
Environmental Impacts (44 FR 56420, October 1, 1979). Categorical 
exclusions are actions identified in an agency's NEPA implementing 
procedures that do not normally have a significant impact on the 
environment and therefore do not require either an environmental 
assessment (EA) or environmental impact statement (EIS). See 40 CFR 
1508.4. Paragraph 4.c.6.i of DOT Order 5610.1C categorically excludes 
``[a]ctions relating to consumer protection, including regulations.'' 
This final rule relates to consumer protection and codifies 
requirements set forth in the Act. The Department does not anticipate 
any environmental impacts, and there are no extraordinary circumstances 
present in connection with this rulemaking.

H. Compliance With Pay-As-You-Go Act of 2023 (Fiscal Responsibility Act 
of 2023, Pub. L. 118-5, Div. B, Title III)

    In accordance with Compliance with Pay-As-You-Go Act of 2023 
(Fiscal Responsibility Act of 2023, Pub. L. 118- 5, div. B, title III) 
and OMB Memorandum (M-23-21) dated September 1, 2023, the Department 
has determined that this final rule is not subject to the Pay-As-You-Go 
Act of 2023 because it will not increase direct spending beyond 
specified thresholds.

I. Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs designated this rule 
as not a ``major rule,'' as defined by 5 U.S.C. 804(2).

    Signed in Washington, DC.
Subash Iyer,
Acting General Counsel, U.S. Department of Transportation.

List of Subjects

14 CFR Part 259

    Air carriers, Consumer protection, Reporting and recordkeeping 
requirements.

14 CFR Part 260

    Air carriers, Consumer protection.

14 CFR Part 399

    Administrative practice and procedure, Air carriers, Air rates and 
fares, Air taxis, Consumer protection, Small businesses.

    For the reasons set forth in the preamble, the Department amends 
title 14 CFR chapter II as follows:

PART 259--ENHANCED PROTECTIONS FOR AIRLINE PASSENGERS

0
1. The authority citation for part 259 is revised to read as follows:

    Authority: 49 U.S.C. 40101(a)(4), 40101(a)(9), 40113(a), 41702, 
41708, 41712, 42301, and 42305.


0
2. Amend Sec.  259.3 by removing the definition of ``Prompt refunds'' 
and adding a definition for ``Prompt refund'' in its place to read as 
follows:


Sec.  259.3  Definitions.

* * * * *
    Prompt refund means refunds made within 7 business days after the 
earliest date the refund was requested as set forth in 14 CFR 
260.6(a)(2) as required by 14 CFR 374.3 for credit card purchases, and 
within 20 calendar days after the earliest date the refund was 
requested as set forth in 14 CFR 260.6(a)(2) for cash, check, debit 
card, or other forms of purchases.
* * * * *

PART 260--REFUNDS FOR AIRLINE FARE AND ANCILLARY SERVICE FEES

0
3. The authority citation for part 260 is revised to read as follows:

    Authority: 49 U.S.C. 40101(a), 41702, 41712, and 42305.


0
4. Revise Sec.  260.1 to read as follows:


 Sec.  260.1  Purpose.

    The purpose of this part is to ensure that carriers promptly refund 
consumers for:
    (a) Fees for ancillary services related to air travel that 
consumers paid for but were not provided;
    (b) Fees to transport checked bags that are lost or significantly 
delayed; and
    (c) Airfare including nonrefundable airfare for a flight that is 
cancelled or significantly changed where the consumer does not accept 
the significantly changed flight or rebooking on an alternative flight, 
or accept any voucher, credit, or other compensation offered by the 
carrier.

0
5. Amend Sec.  260.2 by removing the definitions of ``Prompt refunds'' 
and ``Significant change of flight itinerary or significantly changed 
flight'' and adding in their place definitions for ``Prompt refund'' 
and ``Significantly delayed or changed flight'' to read as follows:


Sec.  260.2  Definitions.

* * * * *
    Prompt refund means refunds made within 7 business days after the 
earliest date the refund was requested as set forth in Sec.  
260.6(a)(2) as required by 14 CFR 374.3 for credit card purchases and 
within 20 calendar days after the earliest date the refund was 
requested as set forth in Sec.  260.6(a)(2) for cash, check, debit 
card, or other forms of purchases.
    Significantly delayed or changed flight means a covered flight 
itinerary with a delay or change made by a

[[Page 65537]]

covered carrier where, as the result of the delay or change:
    (1) The consumer is scheduled to depart from the origination 
airport three hours or more for domestic itineraries and six hours or 
more for international itineraries earlier than the original scheduled 
departure time;
    (2) The consumer is scheduled to arrive at the destination airport 
three or more hours for domestic itineraries or six or more hours for 
international itineraries after the original scheduled arrival time;
    (3) The consumer is scheduled to depart from a different 
origination airport or arrive at a different destination airport;
    (4) The consumer is scheduled to travel on an itinerary with more 
connection points than that of the original itinerary;
    (5) The consumer is downgraded to a lower class of service;
    (6) The consumer who is an individual with a disability is 
scheduled to travel through one or more connecting airports different 
from the original itinerary; or
    (7) The consumer who is an individual with a disability is 
scheduled to travel on substitute aircraft on which one or more 
accessibility features needed by the customer are unavailable.
* * * * *

0
6. Revise Sec.  260.6 to read as follows:


Sec.  260.6  Refunding fare for flights cancelled or significantly 
delayed or changed by carriers.

    (a) Carriers' obligation to provide refunds--(1) Carriers' 
obligation. A covered carrier that is the merchant of record must 
provide a full and prompt refund of the airfare, including any taxes 
and ancillary fees, as set forth in paragraph (a)(2) of this section to 
a consumer that holds a nonrefundable ticket on a scheduled flight to, 
from, or within the United States for any cancelled flight or 
significantly delayed or changed flight where the consumer chooses not 
to:
    (i) Fly on the significantly delayed or changed flight or accept 
rebooking on an alternative flight; or
    (ii) Accept any voucher, credit, or other form of compensation 
offered by the air carrier or foreign air carrier pursuant to paragraph 
(c) of this section.
    (2) Automatic refunds. A full refund of the airfare, including any 
taxes and ancillary fees, is due to a consumer as described in 
paragraphs (a)(2)(i) through (iii) of this section:
    (i) A flight is canceled and a consumer is not offered an 
alternative flight or any voucher, credit, or other form of 
compensation by the air carrier or foreign air carrier pursuant to 
paragraph (c) of this section;
    (ii) A consumer rejects the significantly delayed or changed 
flight, rebooking on an alternative flight, or any voucher, credit, or 
other form of compensation offered by the covered carrier pursuant to 
paragraph (c) of this section; or
    (iii) A consumer does not respond to an offer of:
    (A) A significantly delayed or changed flight or an alternative 
flight and the flight departs without the consumer; or
    (B) A voucher, credit, or other form of compensation by the date on 
which the cancelled flight was scheduled to depart or the date that the 
significantly delayed or changed flight departs.
    (b) Individuals with a disability. A carrier that is the merchant 
of record must provide a full and prompt refund to an individual with a 
disability upon notification by the individual with a disability that 
he/she does not want to continue travel because of the significant 
changes described in paragraphs (b)(1) through (3) of this section. The 
covered carrier must also provide a full and prompt refund to any 
individuals in the same reservation as the individual with a disability 
who do not want to continue travel without the individual with a 
disability in situations described in paragraphs (b)(1) through (3).
    (1) The individual with a disability is downgraded to a lower class 
of service that results in one or more accessibility features needed by 
the individual becoming unavailable.
    (2) The individual with a disability is scheduled to travel through 
one or more connecting airports that are different from the original 
itinerary.
    (3) The individual with a disability is scheduled to travel on a 
substitute aircraft on which one or more accessibility features 
available on the original aircraft needed by the individual are 
unavailable.
    (c) Alternative to refund. A covered carrier may offer a voucher, 
credit, or other form of compensation as an explicit alternative to 
providing a refund required by paragraph (a) of this section if:
    (1) The offer includes a clear and conspicuous notice of--
    (i) The terms of the offer as specified in Sec.  260.8; and
    (ii) The consumer's right to a full refund under this section.
    (2) The voucher, credit, or other form of compensation offered 
explicitly as an alternative to providing a refund required by 
paragraph (a) of this section remains valid and redeemable by the 
consumer for a period of at least five years from the date on which 
such voucher, credit, or other form of compensation is issued;
    (3) Upon the issuance of such voucher, credit, or other form of 
compensation, a covered carrier notifies the recipient of the 
expiration date of the voucher, credit, or other form of compensation; 
and
    (4) Upon request by an individual who self identifies as an 
individual with a disability a covered carrier provides a notification 
under paragraph (c)(3) of this section in an electronic format 
accessible to the recipient.
    (d) Carriers' obligation to notify ticket agents. In situations 
where a ticket agent is the merchant of record for the transaction, 
after receiving a refund request by a consumer through the ticket 
agent, the carrier that canceled or significantly delayed or changed 
the flight must inform the ticket agent without delay whether the 
consumer is eligible for a refund under this section (i.e., whether the 
consumer has accepted the significantly changed flight, the alternative 
flight, or other compensation offered in lieu of refunds).
    (e) Carriers' obligation to transfer funds to ticket agents. In 
situations where a ticket agent is responsible for providing the refund 
to the consumer pursuant to 14 CFR 399.80(l) and the ticket agent does 
not possess the funds of the consumer, that carrier that has the funds 
must promptly transfer the funds to the ticket agent.

0
7. Revise Sec.  260.7 to read as follows:


Sec.  260.7  Affirmative acceptance of an offer of alternative 
compensation.

    A covered carrier must not deem a consumer to have accepted an 
offer for travel credits, vouchers, or other compensation in lieu of a 
refund under Sec.  260.6(c) unless the consumer affirmatively agrees to 
the alternative form of compensation.

0
8. Revise Sec.  260.8 to read as follows:


Sec.  260.8  Disclosing material restrictions, conditions, or 
limitations.

    In carrying out the requirements of Sec.  260.6(c), a covered 
carrier must clearly and conspicuously disclose, no later than at the 
time of voucher or credit offer, any material restrictions, 
limitations, or conditions on travel credits, vouchers, or other 
compensation, including but not limited to validity period, advance 
purchase requirement, capacity restrictions, and blackout dates, 
regardless of whether consumers are entitled to a refund.

[[Page 65538]]

Sec.  Sec.  260.9 and 260.10  Redesignated as Sec. Sec.  260.10 and 
260.11]

0
9. Redesignate Sec. Sec.  260.9 and 260.10 as Sec. Sec.  260.10 and 
260.11, respectively, and add new Sec.  260.9 to as follows:


Sec.  260.9  Notification to consumers.

    (a) Upon the occurrence of a flight cancellation or a significant 
delay or change, a covered carrier must timely notify affected 
consumers about the cancellation or significant delay or change, and 
the information relating to any alternative to refund as provided in 
Sec.  260.6(c).
    (b) Covered air carriers must ensure that their passenger 
notification systems notify passengers owed a refund pursuant to Sec.  
260.6(a) and (b) of their right to receive a refund. Covered carriers 
that provide notification subscription services to passengers must 
ensure notifications under this paragraph be provided through media 
that the carriers offer and the subscribers choose, including emails, 
text messages, and push notices from mobile apps.

PART 399--STATEMENTS OF GENERAL POLICY

0
10. The authority citation for part 399 is revised to read as follows:

    Authority: 49 U.S.C. 40113(a), 41712, 46106, 46107, and 42305.


0
11. Amend Sec.  399.80 by revising paragraph (l) to read as follows:


Sec.  399.80  Unfair and deceptive practices of ticket agents.

* * * * *
    (l) Failing to make a prompt refund of airfare (including any taxes 
and ancillary fees) to a consumer, upon request, for a cancelled flight 
or a significantly delayed or changed flight if the consumer chooses 
not to travel or accept compensation in lieu of a refund in situations 
described in 14 CFR 260.6(a) and (b) when the ticket agent is the 
merchant of record. Failing to provide a prompt refund of airfare 
(including any taxes and ancillary fees), upon request, for a 
significantly delayed or changed flight itinerary to consumers on the 
same reservation as an individual with a disability who does not want 
to continue travel because of a significant change described in 
paragraph (l)(1)(vii)(E) of this section related to downgrades or 
paragraph (l)(1)(vii)(G) of this section related to aircraft 
substitution which result in one or more accessibility features needed 
by the individual with a disability becoming unavailable or because of 
the significant change described in paragraph (l)(1)(vii)(F) of this 
section related to change in connecting airports. A prompt refund is 
one that is made within 7 business days of the ticket agent receiving 
information from a carrier as specified in 14 CFR 260.6(d), as required 
by 12 CFR part 1026 for credit card purchases, and within 20 calendar 
days of refund becoming due for cash, check, debit card, or other forms 
of purchases. Ticket agents must provide the refunds in the original 
form of payment (i.e., money is returned to individual using whatever 
payment method the individual used to make the original payment, such 
as a check, a credit card, a debit card, cash, or airline miles), 
unless the consumer agrees to receive the refund in another form of 
payment that is cash equivalent. A ticket agent may retain a service 
fee charged when issuing the original ticket to the extent that service 
is for more than processing payment for a flight that the consumer 
found. That fee must be on a per-passenger basis and its existence, 
amount, and the non-refundable nature if that is the case must be 
clearly and prominently disclosed to consumers at the time they 
purchase the airfare. Ticket agents may offer alternative 
transportation, travel credits, vouchers, or other compensation that 
remains valid and redeemable by the consumer for a period of at least 5 
years from the date on which such voucher, credit, or other form of 
compensation in lieu of refunds but must first inform consumers that 
they are entitled to a refund if that is the case. Ticket agents must 
clearly disclose any material restrictions, conditions, and limitations 
on travel credits, vouchers, or other compensation they offer, 
including the expiration date of the travel credits, vouchers, or other 
compensation, which must be provided, upon request, to an individual 
who self identifies as an individual with a disability in an electronic 
format accessible to the recipient.
    (1) For purposes of this paragraph (l), the following definitions 
apply:
    (i) Business days means Monday through Friday, excluding Federal 
holidays in the United States.
    (ii) Cancelled flight or cancellation means a flight with a 
specific flight number scheduled to be operated between a specific 
origin-destination city pair that was published in a carrier's Computer 
Reservation System at the time of the ticket sale but was not operated 
by the carrier.
    (iii) Cash equivalent means a form of payment that can be used like 
cash, including but not limited to a check, a prepaid card, funds 
transferred to the passenger's bank account, funds provided through 
digital payment methods (e.g., PayPal, Venmo), or a gift card that is 
widely accepted in commerce. It is not cash equivalent if consumers 
bear the burden for maintenance or usage fees related to the payment.
    (iv) Class of service means seating in the same cabin class such as 
First, Business, Premium Economy, or Economy class, which is defined 
based on seat location in the aircraft and seat characteristics such as 
width, seat recline angles, or pitch (including the amount of legroom).
    (v) Covered flight means a scheduled flight to, from, or within the 
United States.
    (vi) Merchant of record means the entity responsible for processing 
payments by consumers for airfare, as shown in the consumer's financial 
charge statements such as debit or credit card charge statements.
    (vii) Significant delayed or changed flight means a covered flight 
itinerary with a delay or change made by a U.S. or foreign carrier 
where as the result of the delay or change:
    (A) The consumer is scheduled to depart from the origination 
airport three hours or more for domestic itineraries and six hours or 
more for international itineraries earlier than the original scheduled 
departure time;
    (B) The consumer is scheduled to arrive at the destination airport 
three hours or more for domestic itineraries or six hours or more for 
international itineraries later than the original scheduled arrival 
time;
    (C) The consumer is scheduled to depart from a different 
origination airport or arrive at a different destination airport;
    (D) The consumer is scheduled to travel on an itinerary with more 
connection points than that of the original itinerary;
    (E) The consumer is downgraded to a lower class of service;
    (F) The consumer with a disability is scheduled to travel through 
one or more connecting airports that are different from the original 
itinerary; or
    (G) The consumer with a disability is scheduled to travel on 
substitute aircraft on which one or more accessibility features needed 
by the passenger are unavailable.
* * * * *
[FR Doc. 2024-17602 Filed 8-9-24; 8:45 am]
BILLING CODE 4910-9X-P