30-Nov-2020 4:10 PM

US DoT issues final rule on the definition of unfair or deceptive practices

US Department of Transportation (DoT) issued (27-Nov-2020) a final rule that codifies the terms 'unfair' and 'deceptive', for when the DoT utilises its authority to prohibit unfair or deceptive practices by airlines or ticket agents. According to the final rule, a practice is defined as 'unfair' if it causes or is likely to cause substantial injury, which is not reasonably avoidable, and the harm is not outweighed by benefits to consumers or competition. A practice is defined as 'deceptive' if it is likely to mislead a consumer, acting reasonably under the circumstances, with respect to a material matter. The rule is expected to benefit the public and regulated entities by providing greater transparency and predictability, and also codifies the practice of providing airlines and ticketing agents with the opportunity to provide relevant evidence prior to the DoT taking any action on an allegedly unfair or deceptive practice. [more - original PR] [more - original PR - II]

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