CCPA To Probe Online Ticket Booking Cancellation Fees On Pralhad Joshi’s Direction
Government orders probe into online ticket cancellation fees practices.
Union Minister Pralhad Joshi has directed an investigation into online ticket booking platforms over allegations of excessive cancellation charges imposed on consumers, potentially beyond what is permitted or disclosed at the time of booking.
In a post on X on Saturday, Joshi said he had instructed the Department of Consumer Affairs and the Central Consumer Protection Authority (CCPA) to examine whether such platforms are levying cancellation fees that exceed airline-imposed charges or differ from the terms shown to users during the booking process. The directive also extends to other online ticketing services to assess whether similar practices are being followed across the sector.
The move comes amid growing consumer complaints regarding lack of transparency in pricing structures, particularly in cases where cancellation penalties are not clearly communicated upfront. According to the minister, such practices raise concerns about fairness and may undermine trust in digital booking ecosystems that have become the primary mode of travel reservations for millions of users.
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Joshi further stated that if platforms are found to be violating consumer protection norms, the practices could be classified as Unfair Trade Practices under the Consumer Protection Act, 2019. He emphasised that the Central Consumer Protection Authority has the authority to initiate enforcement measures, including class action-style interventions, to safeguard consumer interests.
The minister’s directive also signals increased regulatory scrutiny of digital service providers, particularly in sectors where pricing transparency and cancellation policies directly impact consumer rights. Authorities are expected to assess whether platforms have complied with disclosure requirements and whether additional safeguards are needed to prevent arbitrary deductions.
Consumer affairs officials are now expected to compile data from major booking platforms and airlines to determine the extent of discrepancies, following which appropriate enforcement action may be considered based on findings of the investigation.
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