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By Jacob Davidson
July 29, 2014
John Lund/Sam Diephuis—Getty Images

Currently, airlines must include the full price of a flight—including federal taxes and fees—in advertisements. However, a new bill, which was approved by the House of Representatives on Monday, would allow the ads to exclude government fees, allowing for marketing that could fool consumers into thinking their flights will cost significantly less than they’ll actually end up paying.

As Money’s Brad Tuttle reported in April, $61 dollars of a typical $300 flight comes from federal taxes–20% of the overall ticket price. Under the new law, airlines could ignore that portion of the fare and advertise the same flight at $239. Could anyone actually buy that flight for $239? Of course not.

Regulations passed in 2012 outlawed this type of misdirection, but the airlines are now one step away from bringing it back.

The bill’s advocates argue that letting airlines advertise their unmodified prices would show consumers how much the government is adding to their travel bill. When the law was first proposed in the spring, supporters said it would “restore transparency to the advertising of U.S. airline ticket prices, and ensure that airfare ads are not forced to hide the costs of government from consumers.”

Knowing about government-added expenses is all well and good, but consumer advocates believe the law will do more to confuse flyers than educate them. The National Consumers League says the bill doesn’t provide transparency, and merely allows the airlines to advertise eye-grabbing but deceptive lower prices in order to win more business. In this way, the “Transparent Airlines Act” actually makes what consumers must pay for flights more opaque. That’s the opposite of transparency.

The Transparent Airlines Act still needs to pass the Senate before it becomes a law, and its opponents aren’t going to give up without a fight.

“Our organization, together with other consumer groups, will work closely with Senate staff to stop the passage of a companion bill,” said Charlie Leocha, Chairman of Travelers United, a consumer protection organization focused on travelers. “Even though the name of the bill contains the word ‘transparency,’ the effect of this legislation would be anything but.”

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The purpose of this disclosure is to explain how we make money without charging you for our content.

Our mission is to help people at any stage of life make smart financial decisions through research, reporting, reviews, recommendations, and tools.

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Our content is free because our partners pay us a referral fee if you click on links or call any of the phone numbers on our site. If you choose to interact with the content on our site, we will likely receive compensation. If you don't, we will not be compensated. Ultimately the choice is yours.

Opinions are our own and our editors and staff writers are instructed to maintain editorial integrity, but compensation along with in-depth research will determine where, how, and in what order they appear on the page.

To find out more about our editorial process and how we make money, click here.

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