Spirit Airlines, Inc. has agreed to pay up to $8.25 million as part of a class action settlement arising out of the company’s “gotcha fees” for carry-on bags. The airline will pay $7.25 million to a settlement fund from which class members can claim damages, in addition to $1 million in attorneys’ fees.
The lawsuit, which was initially filed in federal court in California, alleges that Spirit Airlines violated the Unfair Competition Law and Fraudulent Business Practices Act by charging significantly higher fees for carry-on bags than it charged for checked bags, and by deceiving customers about the luggage policy. Plaintiffs claim that the airline misled them into believing that they were paying standard fees for their carry-on luggage, when in reality the company charged more than double the fee for carry-on bags.
Under the terms of the settlement, Spirit Airlines has agreed to pay to refund any customers who paid more for carry-on bags than they paid for checked bags. The settlement also provides that the airline will offer up to $125 to anyone who paid excessive “gotcha fees” for their carry-on bags.
Any customers who think they were overcharged by Spirit Airlines for their carry-on bags can submit a claim for compensation from the settlement fund. To be eligible, claimants must have purchased a ticket from Spirit Airlines after January 1, 2016 and must have paid “gotcha fees” for carry-on bags in excess of the fee for checked bags.
The settlement is good news for travelers, who can rest assured that they will no longer be forced to pay excessive fees for carry-on bags on Spirit Airlines flights. The settlement is due to be finalized in January 2018, so affected customers should be sure to submit their claim forms soon if they wish to receive compensation.
