📺 Stream EntrepreneurTV for Free 📺

Popular U.S. Airline to Pay Millions in Class Action Over 'Gotcha' Bag Fees — Find Out If You Qualify for Cash The deal was disclosed late Wednesday in federal court in Brooklyn.

By Amanda Breen

Key Takeaways

  • Spirit Airlines has agreed to pay up to $8.25 million to settle a class action lawsuit over "gotcha" carry-on bag fees.
  • Frontier Airlines also faces a class action suit over alleged deceptive practices around carry-on bag fees.
entrepreneur daily

Travelers who opt for budget airlines often snag ultra-low ticket fares — but end up paying in other ways.

Passengers who booked with Spirit Airlines via third-party travel services allege they were hit with surprise carry-on bag fees, and now the company has agreed to pay up to $8.25 million to settle a class action lawsuit, Reuters reported.

Related: What Is Going on With the Spirit Airlines and JetBlue Merger

The deal was disclosed late Wednesday in federal court in Brooklyn, and the class includes first-time Spirit customers who bought their tickets on Expedia, Travelocity, Kiwi, CheapOair, CheapTickets or BookIt between August 2011 and May 2017, per the outlet.

Those eligible who request refunds will be reimbursed for up to 75% of their fees, though the final payout depends on how many class members seek refunds, and the $8.25 million maximum will include attorneys' fees as well, per the motion.

Plaintiffs in the 2017 lawsuit, who initially sought $100 million in punitive damages, claimed Spirit advertised deceptively low prices without mention of the "gotcha" carry-on bag fees that sometimes cost customers as much as the tickets themselves, according to Reuters.

Spirit isn't the only budget airline facing legal action for carry-on bag fees either.

A Frontier Airlines passenger who was forced to pay $100 for a carry-on bag that didn't fit into the dimension checker at Orlando International Airport claims the sizer was deliberately made smaller, TheStreet reported.

Related: Frontier Airlines Debuts Unlimited Flight Pass | Entrepreneur

The woman filed a class action lawsuit to seek a refund of the baggage fee, $10,000 for alleged violation of Florida's Deceptive and Unfair Trade Practices Act and $100 million in punitive damages.

Amanda Breen

Entrepreneur Staff

Senior Features Writer

Amanda Breen is a senior features writer at Entrepreneur.com. She is a graduate of Barnard College and received an MFA in writing at Columbia University, where she was a news fellow for the School of the Arts.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Starting a Business

Most People Have No Business Starting a Business. Here's What to Consider Before You Become an Entrepreneur

You need to find the right business opportunity at the right time and take the right steps to beat the odds.

Leadership

AI vs. Humanity — Why Humans Will Always Win in Content Creation

With the proliferation and integration of AI across organizations and business units, PR and marketing professionals may be tempted to lean into this new technology more than recommended.

Business News

Passengers Are Now Entitled to a Full Cash Refund for Canceled Flights, 'Significant' Delays

The U.S. Department of Transportation announced new rules for commercial passengers on Wednesday.

Growing a Business

Who You Hire Matters — Here's How to Form a Team That's Built to Last

Among the many challenges related to managing a small business, hiring a quality team of employees is one of the most important. Check out this list of tips and best practices to find the best people for your business.

Franchise

Franchising Is Not For Everyone. Explore These Lucrative Alternatives to Expand Your Business.

Not every business can be franchised, nor should it. While franchising can be the right growth vehicle for someone with an established brand and proven concept that's ripe for growth, there are other options available for business owners.

Management

7 Ways You Can Use AI to 10x Your Leadership Skills

While technology can boost individual efficiency and effectiveness, it's essential to balance their use with human intuition and creativity to avoid losing personal connection and to optimize workplace satisfaction.