Feds, consumer advocate square off in court over air passenger refunds

he federal government and a consumer rights advocate squared off in court Wednesday over whether regulators misled passengers by encouraging travel credit rather than refunds at the onset of the pandemic. In the early months of COVID-19's spread, airlines cancelled hundreds of thousands of flights and offered company vouchers to customers instead of refunds. The Canadian Transportation Agency issued a statement on vouchers in March 2020 that said flight credit constituted a “reasonable approach" to passengers left out of pocket by the cancelled trips. The post suggested a refundwas mandatory only if the contract between the customer and airline provided for it. The Air Passenger Rights advocacy group argues that the regulator showed potential bias by misinforming travellers about their legal right to a refund for services not rendered. "By giving the public a false sense of legitimacy to the airlines’ unlawful actions, the CTA’s statement on vouchers defeated existing federal laws for refunds and unlawfully interfered with passengers’ credit card chargebacks and travel insurance claims," the group stated in court filings. The government argued the case should be dismissed, saying the CTA's statement simply reiterated that vouchers were one means of compensation. It said the advocacy group incorrectly framed the guidance as tainted.<br/>