State AG urges Congress to adopt new consumer protections to safeguard airline industry customers

A bipartisan coalition of 40 attorneys general has sent a letter urging Congress to enact new consumer protection measures for airline industry customers either as part of a financial relief package or in separate legislation as soon as possible, according to Michigan Attorney General Dana Nessel.

“While Congress has provided assistance to the airline industry to keep it afloat, I encourage them to also consider those who support these airlines by purchasing tickets,” said Nessel. “My office has heard from Michiganders who have been hit with financial challenges due to an airline refusing them refunds after a cancellation was made because of COVID-19.

“Airline companies have already received $60 billion in CARES Act funding, and my colleagues and I urge Congress to extend a similar courtesy to consumers by making sure they’re being treated fairly by the very same industry our tax dollars are supporting.”

The United States passenger and cargo airline industry received nearly $60 billion in federal stimulus funding through the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Congress is currently considering extending federal support by another six months and granting the industry an additional $28 billion in payroll support.

In a letter to House Speaker Nancy Pelosi, Senate Majority Leader Mitch McConnell, House Minority Leader Kevin McCarthy and Senate Minority Leader Charles Schumer, Nessel and her colleagues called on Congress to enact various consumer protections either in conjunction with additional financial support to prevent airline industry layoffs and furloughs or as soon as possible thereafter.

They include requiring carriers that receive federal financial relief to provide full refunds to customers who voluntarily cancel their flight reservations for reasons related to COVID-19.

The AGS also call for a strengthening of existing laws requiring refunds for flight cancellations to be remitted in full and according to federal law, and preventing delays in the issuance of refunds or expirations that effectively cancel the value reimbursed.

With the backing of 40 of the nation’s attorneys general, the National Association of Attorneys General (NAAG) has chosen to endorse the letter as one of its official policy positions. Historically, NAAG endorses less than a dozen policies a year.

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