Canadian Transportation Agency dodges court scrutiny over controversial COVID refund notice

The Canadian Transportation Agency (CTA) has avoided judicial review over a controversial website notice that discouraged travelers from claiming cash refunds for flights canceled due to COVID-19. Blacklock's Reporter says the Federal Court of Appeal dismissed a challenge from the consumer group Air Passenger Rights, which sought to have the notice scrutinized as inappropriate and misleading.In her ruling, Justice Elizabeth Walker defended the notice, stating that it provided "only general guidance" during a time of "air travel chaos and uncertainty for travelers and airlines alike." She added that the notice was written in "simple language" and suggested a "possible way forward," concluding that there was no evidence it "misinformed the traveling public about their refund rights."Following the outbreak of the pandemic, more than three million ticket holders were owed $8.5 billion in compensation for canceled flights. The 2019 Air Passenger Protection Regulations mandated compensation, including $900 for denial of boarding. However, on March 25, 2020, the CTA published a notice titled “Important Information For Travelers During COVID-19,” advising travelers to accept “vouchers or credits for future travel” instead of pursuing cash refunds.Air Passenger Rights argued that the notice was designed to protect airlines by discouraging credit card chargebacks and misled passengers about their rights. However, Walker dismissed the claim, stating that the notice “does not affect legal rights, impose legal obligations or cause prejudicial effects,” and that it contained "non-binding guidance only."The notice followed confidential communication between airline lobbyists and Scott Streiner, then-CEO of the CTA, who acknowledged the challenges faced by the airlines and proposed measures to "minimize the number of complaints."During testimony at the House of Commons transport committee in 2020, Streiner admitted that the regulations were unclear on whether passengers were entitled to compensation during a pandemic. “It’s a question of legal interpretation,” he said, prompting criticism from MPs. Bloc Québécois MP Xavier Barsalou-Duval remarked, “I think we are playing with words here,” while New Democrat MP Taylor Bachrach accused the government of prioritizing airline corporations over Canadian citizens.The pandemic triggered a record number of complaints to the CTA, resulting in a backlog of 71,000 claims. Passengers seeking compensation have faced wait times averaging two years. Despite this, the court’s ruling ensures that the CTA's handling of the COVID-19 refund issue will not face further scrutiny.