Airlines sue DOT over new rules requiring disclosure of fees

By Pete Muntean, CNN

(CNN) — Major airlines have filed a lawsuit against the federal government over new rules that would require carriers to disclose all airline fees — including those for checked and carry-on bags as well as change and cancelation fees — up front.

The suit was filed Friday in the U.S. Fifth Circuit Court by carriers Alaska, American, Delta, Hawaiian, JetBlue, and United along with industry lobby Airlines For America. It alleges the Department of Transportation exceeded its authority in announcing the new rule, calling it an “arbitrary, capricious” change.

Transportation Secretary Pete Buttigieg announced the new rule on April 24, saying “healthy competition requires that as a consumer you can comparison shop, which means knowing the real price of a trip before and not after you buy.” The Department of Transportation estimates the rule change will save consumers a half billion dollars each year.

“The ancillary fee rule by the Department of Transportation will greatly confuse consumers who will be inundated with information that will only serve to complicate the buying process,” lobby Airlines For America said in a statement. “DOT’s attempt to regulate private business operations in a thriving marketplace is beyond its authority.”

The A4A statement adds: “The DOT ancillary rule is a bad solution in search of a problem.”

DOT did not immediately respond to a request for comment.

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