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HR10517119th CongressWALLET

Fair Fees Act

Sponsored By: Representative Cohen, Steve [D-TN-9]

Introduced

Summary

This bill would guarantee timely cash refunds to air travelers by requiring carriers to return the full fare for cancellations, major delays, or significant schedule changes when passengers decline alternatives. It sets strict refund timelines, limits voucher use, and creates enforcement rules for carriers and ticket agents.

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  • Passengers and families would receive full cash refunds including taxes and fees when they reject a significantly delayed or changed flight or any voucher. Refunds must be issued within 7 business days for credit-card purchases and within 20 days for other payment methods.
  • If a passenger cancels at least 48 hours before departure they would get a full cash refund within 30 days and must be told about that right before purchase. Carriers may offer vouchers only if the offer shows clear terms, a notice of the right to a cash refund, and no expiration.
  • The rule targets "covered carriers" with over $1.5 billion in annual operating revenue and applies to foreign carriers on U.S. routes, with the $1.5 billion threshold adjusted for inflation starting in 2028. Violations would be subject to civil penalties under current law.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Cash refunds for canceled or delayed flights

If enacted, you would be able to get a full cash refund, including taxes and ancillary fees, when an airline cancels your flight or when a flight is significantly delayed or changed and you choose not to fly. If you cancel a ticket at least 48 hours before departure, you would be able to get a full cash refund within 30 days. Refunds for credit-card purchases would have to be issued within 7 business days after you first requested the refund; refunds for cash or other payment methods would have to be issued within 20 days. Carriers or ticket agents could offer vouchers or credits only as an explicit alternative, and any voucher or credit would have to show terms clearly, be redeemable at any time, and have no expiration. A flight would count as "significantly delayed or changed" if arrival is 3 or more hours late for domestic trips or 6 or more hours late for international trips. Carriers and ticket agents would also need to update passenger notices and disclose the 48-hour cancellation/refund right before sale.

Which airlines must follow rules

If enacted, a "covered carrier" would be any passenger air carrier with more than $1.5 billion in operating revenue in the prior year, or any foreign air carrier that operates a flight to or from the United States. The $1.5 billion threshold would be increased each year beginning in 2028 by the annual percentage change in the CPI‑U (U.S. city average). Being a covered carrier would determine which airlines must follow the bill's refund, timing, and notification requirements.

Sponsors & CoSponsors

Sponsor

Cohen, Steve [D-TN-9]

TN • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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