Biden to announce rule requiring airlines to disclose “true cost” of tickets
Washington — President Biden will announce a new initiative Monday that would eventually allow consumers to see a more complete price on airline tickets — including baggage and change fees — before they buy, as the White House continues to search for ways to lower costs for Americans amid persistently high inflation.
The White House states the Transportation Department’s proposed rule will prohibit airlines from concealing the “true price” of airline tickets. This will help consumers save money upfront and encourage more airlines to offer lower fares. This requirement will not only apply to airlines directly, but also third-party search sites like Kayak and Expedia.
Airlines made nearly $700 million on cancellation and change fees last year, according to the White House.
The proposal, which dates back to the Obama administration before it was scrapped in 2017 by then-President Donald Trump, would need to go through a 60-day comment period before final approval. The president will announce the decision at Monday’s meeting of the White House Competition Council. This council was established last year to help his administration find cost-saving measures that would benefit consumers. This will be the third meeting of the group, which is headed by Brian Deese (National Economic Council director).
Mr. Biden will push other federal agencies to take cost-saving measures, especially by increasing transparency about hidden fees that can increase the true cost for goods and services.
The Federal Communications Commission has proposed that internet service providers should clearly outline the fees and charges for what it calls a “broadband nutritional label”. The Monday announcement by the Agriculture Department will include new measures to encourage competition in different agricultural markets.
The administration has taken similar actions when it comes to bank and credit card fees, which the White House says have saved consumers $3 billion annually compared to before the COVID-19 pandemic.
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