Gottheimer announces new ‘ETA Act’ legislation to promote airline transparency, protect passengers

NEWARK, NJ (Essex County) — U.S. Congressman Josh Gottheimer (NJ-5) Monday announced new legislation — the Enhancing Transparency from Airlines or “ETA Act” —  to promote airline transparency and protect passengers.

This new legislation expands on Gottheimer’s Clear and Simple Airline Agenda, which aims to eliminate surprise costs and prevent families from having to read endless pages of wonky, small type legalese and fare rules just to try to understand what they are buying and the fees that come with their plane ticket.

Gottheimer’s bill also sures that when a long delay or cancellation does strike, families get their hard-earned money back — in cash, not vouchers.

The ETA Act codifies important recent rule changes from the Department of Transportation (DOT), so they can’t be changed on a whim by a future Administration.  

Unclear Junk Fees and Flight Cancellations Have Led to:

• Consumers filed more than 37,000 complaints with the DOT about their airline service in 2023, expressing frustration over confusing, hidden fees and arbitrary policies regarding refunds.
• “Baggage fees” have increased by more than thirty percent between 2018 and 2022.
• So far this year, 126,000 flights in the U.S. — nearly a quarter of America’s flights — have been delayed and another 1,500 were cancelled. 
  • Rather than deliver full refunds, America’s airlines have tended to give vouchers, which are rarely used. 
  • During the pandemic, major U.S. airlines reported that travelers were sitting on more than $10 billion in unused credits.

 Gottheimer’s ETA Act:

• First, it requires airlines to provide direct refunds rather than vouchers following a significant diversion in flight plans including a major delay (3 hours for a domestic flight and six hours for international) or cancellation. The bill will also require refunds for baggage, Wi-Fi, and seat selection fees when airlines do not follow through with these services.
  • Significant diversions include a three-hour delay for domestic flights and a six-hour delay for international trips.
• Second, it will protect customers from surprise fees when purchasing a ticket, requiring airlines to communicate all fees upfront.
  • The legislation will require airlines to disclose extra fees critical to a passenger’s travel along with the full fare.

By codifying these rules, which were announced by the DOT last week, Gottheimer will ensure that they endure even in the case of an administration change.

“My new legislation, the Enhancing Transparency from Airlines Act or ETA Act is all about protecting consumers and families. Starting next year, all airlines that operate in the U.S. will be required to promptly issue cash or credit card refunds, not just vouchers, to passengers when their flights are cancelled or significantly changed — or when they face other travel issues like significantly delayed baggage. Instead of airlines making up refund rules on the fly, pun intended, refunds will be automatic, prompt, and standardized,” Gottheimer said.

“To help address the hide-and-seek game surrounding those hidden or surprise extra fees that get added on to the original price, airlines will now be required to make them clear and transparent up front — they can’t them in fine print or on some hard-to-find place on the website. These fees also have to be shown up front, when you search for the fare – not on that last screen right before you check out. This is all about promoting ‘fare transparency,'” Gottheimer said.