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US rule change provides more rights to refunds for canceled or delayed cruises

PHOTO: LISA SETRINI-ESPINOSA/FREEIMAGES CRUISE_US_flag.jpg
The US Federal Maritime Commission is amending its regulations governing non-performance by cruise lines and establishing new requirements for when passengers should be provided refunds for canceled or delayed voyages.

'Amending the Commission’s regulations to provide passengers more rights and options when a cruise line has not performed is good for consumers. I am grateful for the trust my fellow Commissioners placed in me to lead Fact Finding 30 and for their support in expanding consumer protections,' Commissioner Louis Sola said.

Direct claims against financial responsibility instruments

The changes define non-performance as canceling a voyage or delaying a voyage by three or more calendar days if a passenger elects not to embark on delayed or substituted voyage offered by an operator. The Commission also changed its regulations to allow passengers on delayed or canceled voyages to make direct claims against financial responsibility instruments, such as bonds maintained by operators, after the passenger’s unsuccessful attempt to receive a refund directly. Finally, the rule allows all fees, including ancillary fees, paid by a passenger, to be eligible for a refund.

These standards apply only to cruises embarking from a US port. FMC surety does not provide for reimbursement of air travel, shoreside hotel expenses and other expenses outside of water transportation.

'The proper thing to do'

FMC Chairman Daniel Maffei applauded the work of Sola on Fact Finding 30 and his identifying 'these needed changes to Commission regulations,' adding: 'Consumers deserve more alternatives than the often-limiting recourses specified in a ticket contract. Updating the Commission’s regulations was the proper thing to do, and these rule changes deliver more rights and remedies to the public.'

The changes become effective 30 days after their publication in the Federal Register and will apply to cruises booked on and after that date.

The rule change stems from recommendations Sola made in April 2020 that he identified as part of work as a fact-finding officer for Fact Finding 30 Investigation, 'COVID-19 Impact on Cruise Industry.'