The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.
“TRANSPARENT AIRFARES ACT OF 2014” mentioning the U.S. Dept. of Transportation was published in the Extensions of Remarks section on pages E1318-E1319 on Aug. 1, 2014.
The publication is reproduced in full below:
TRANSPARENT AIRFARES ACT OF 2014
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speech of
HON. HENRY A. WAXMAN
of california
in the house of representatives
Monday, July 28, 2014
Mr. WAXMAN. Mr. Speaker, I rise to submit the following letters into the record with regard to the debate on H.R. 4156.
Consumer Federation
of America
July 18, 2014
Dear Representative: Consumer Federation of America, a nonprofit association of consumer organizations around the country that represent the interests of millions of your constituents, urges you to reject HR. 4156, the Transparent Airline Act of 2014. This bill may be taken up on the suspension calendar, but at whatever point it is presented, we ask you to oppose it.
There is nothing transparent, or pro-consumer, about this bill. It would allow airlines to advertise fares that do not include the mandatory taxes, hiding the true cost until consumers reach the end of the purchase process. This would make the cost of airline tickets appear artificially low and prevent budget-conscious consumers from determining upfront whether they can afford to fly and how the cost of doing so compares to other options, such as traveling to their destinations by train or car.
The argument that consumers are entitled to know how much of the ticket price is comprised of taxes is totally disingenuous--that breakdown does show before consumers complete their purchases. Unlike charges for things such as checked baggage and extra legroom, however, taxes are not optional. Therefore, consumers do not base their air travel decisions on the amount of the taxes, which are standardized. Just as with buying gasoline, they shop for airline tickets based on the total cost including taxes. They are entitled to know that cost at the onset.
Please stand with the traveling public in supporting real truth in airfares by rejecting H.R. 4156.
Sincerely yours,
Susan Grant,Director of Consumer Protection.
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July 15--Consumer Groups' Letter to U.S. House Members
Dear Members of the U.S. House of Representatives: We the undersigned consumer groups have learned that highly controversial H.R. 4156, the Transparent Airfares Act of 2014, is on the short list in the House for possible inclusion on the Suspension Calendar prior to the August recess. H.R. 4156 is contentious legislation that would harm millions of consumers by reversing a U.S. Department of Transportation (DOT) rule implemented in 2012 as a cure to misleading airline advertising. We urge you to strongly object to the inclusion of H.R. 4156 on the Suspension Calendar.
Consumer groups were not alerted to the prospect of this legislation, nor were we provided any opportunity for input before Committee markup. H.R. 4156 was rushed by voice vote through the House Transportation Committee on April 9, 2014 after just 9 minutes of discussion. There were no hearings, no outreach for public opinion. This rushed process has denied other stakeholders an opportunity to inform Congress of their views and the flaws in this bill.
Now, after steamrollering the bill through Committee, airlines hope to rush the bill through the House under Suspension of the Rules. But this is not the type of unobjectionable proposal that the Suspension Calendar is designed for; rather, it is harmful and controversial special-interest legislation. There is not one consumer group or business travel organization that supports this legislation; most have publicly criticized both the bill and the rushed process.
This anti-consumer legislation serves no purpose, in our view, other than to mislead consumers about the real price of airfare--to the benefit of airlines, but at the expense of consumers.
Indeed, The New York Times Editorial Board on April 22 criticized the bill in an editorial saying: ``This push to mislead consumers is particularly galling since recent mergers, like that of American Airlines and US Airways, have made the industry less competitive.'' Likewise, The Washington Post reported on April 24: ``Consumers have reacted to this bill in the same way their advocates have: They're dead-set against it.''
We urge you to stand up against this anti-consumer move by the airlines and to ask House leadership not to schedule this highly controversial bill for the Suspension Calendar, and instead insist on a fair opportunity for travel industry and consumer groups' input and proper deliberation.
Sincerely,
AirlinePassengers.org, Association for Airline Passenger Rights, Business Travel Coalition, Consumers Union, Ed Perkins, Consumer Advocate, FlyersRights.org, National Consumers League, Travelers United, U.S. PIRG.
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Travelers United, Inc.,
Arlington, VA, July 30, 2014.
Dear Representative: I write to outline the harm the Airfare Transparency Act (HR 4156) will cause for passengers, travel agencies and corporate travel managers. And, to highlight the strong opposition to this legislation from consumers, the aviation distribution industry and corporate travel managers.
HR 4156 is completely unnecessary for its proposed impact.
Under this bill aviation will become the only industry in American permitted to add federal excise taxes and fees at the end of the ticket buying process, just like local taxes and fees.
HR 4156 will enshrine drip pricing into law, a form of deceptive and misleading pricing that has long been battled by the FTC and DOT.
This legislation makes understanding airfares less transparent, more confusing and misleading.
Airlines and their unions claim that this bill is necessary to ensure passengers know ``exactly how much of their ticket price is attributable to federal taxes and fees while at the same time knowing the full price of air travel before they purchase a ticket.''
The current DOT rules allow for airlines to do exactly that. Specific language in the regulation codifies how that can be done. Plus, airlines have many other opportunities to clearly outline taxes and fees paid when purchasing tickets. Airlines can explain taxes and fees on ticket itineraries. Airlines can print taxes and fees on boarding passes along with Sudoko games and the weather. However, airlines choose not to do this.
When airlines claim that they are the unjustly subjected to revealing federal excise taxes prior to purchase, they are wrong. Every other industry in the U.S. that is subjected to federal excise taxes and federal fees includes those costs in the product price. These include gasoline, liquor, beer, tires, trucks and others. The taxes and fees that other transportation and travel entities add to the final prices are state and local taxes and fees--airlines are exempt from those taxes.
The only part of this bill that would change what can be done under the current DOT full-fare regulations is the misleading and deceptive ability to advertise incomplete low prices for which no consumer can purchase air travel.
HR 4156 makes airfares more difficult to understand and purchase. It was passed out of committee and under suspension of rules with no consumer input and no consultation with the airline distribution network of travel agents and corporate travel managers that deal with the public on a day-by-day basis.
This bill has been opposed by far more than a few ``talking heads.''
Almost every major newspaper has opposed HR 4156 in editorials or articles over the past few months. The papers and magazines include The New York Times, Washington Post, USA Today, Chicago Tribune, Time Magazine, and many others. A change.org petition garnered more than 127,000 signatures specifically opposing this bill.
Major consumer organization, in addition to Travelers United (formerly Consumer Travel Alliance), have aligned to oppose this legislation. These organization include AAA, Association for Airline Passenger Rights, Business Travel Coalition, Consumer Federation of America, Consumers Union, Ed Perkins (Consumer Advocate), FlyersRights.org, National Consumers League and U.S. PIRG.
This legislation undoes years of hard work by advocates to ensure that consumers are not duped when purchasing airfare. Transparency cannot be achieved through confusion.
Sincerely,
Charlie Leocha,
Chairman.
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