Tuesday, July 24, 2012
The U.S. Court of Appeals says the government can require airlines to show consumers a total ticket price that includes taxes and fees in print and online ads.
The court said in a decision released Tuesday that the Department of Transportation has the authority to regulate "unfair and deceptive" airline industry practices.
The ruling also covers two other regulations: A requirement that airlines allow consumers who purchase tickets more than a week in advance the option of canceling their reservations without penalty within 24 hours after purchase, and a ban on airlines increasing the price of tickets or baggage fees after tickets have been bought.
The rules had been challenged by Spirit and Southwest airlines, with the support of two major airline industry trade associations.