On July 29, the U.S. Court of Appeals for the 5th Circuit granted a stay against a recent U.S. Department of Transportation (DOT) rule that regulated how airlines disclose fees to consumers during the booking process. The DOT’s rule was issued in April and dictated how airlines disclosed “ancillary service fees” (e.g., baggage or change fees) during booking. The rule went into effect on July 1. The plaintiffs, a class of large airlines and associations, prevailed by arguing that the rule (i) exceeded the DOT’s authority, (ii) was arbitrary and capricious, and (iii) wrongly bypassed the notice and comment period. The appellate court granted the stay and expedited the petition for review.
