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Cruise Lines Agree To Refund $21 Million In Fuel Surcharges

Florida goes after cruise lines for retroactive charges

March 11, 2008

Consumers thought that was hardly fair, and neither did Florida Attorney General Bill McCollum. As a result, Royal Caribbean Cruise Lines and Celebrity Cruises have agreed to refund $21 million to consumers nationwide who were charged the fuel surcharge after they had booked their cruise.

"Royal Caribbean and Celebrity Cruises are the first cruise lines to step forward and take actions to resolve this matter in their customers' best interest," McCollum said. "This resolution will serve as a model for the rest of the cruise line industry and I expect the other companies to take this example and follow suit."

The agreements were reached after the McCollum's Economic Crimes Division received several hundred complaints from around the country about the entire cruise line industry, alleging cruise lines were retroactively charging a fuel supplement charge after cruises had been booked and deposits had been made by consumers.

In addition to investigating the manner in which the charges were disclosed, the Attorney General's Office also looked into whether or not the charges violated an agreement from 1997. Today's agreements amend the 1997 agreement to allow for the imposition of the fuel supplement as long as the charges are disclosed in a clear and conspicuous manner in advertising and bookings.

Under the agreements, all consumers who were retroactively charged a fuel supplement will be refunded the full cost of the surcharge. Consumers who have not yet sailed will receive their refund as an on-board credit. In the future, the cruise lines must also ensure clear and conspicuous disclosure of any fuel supplement charges at the time the reservations are made, as well as in their advertisements.

McCollum said Royal Caribbean and Celebrity Cruises will contact consumers eligible for refunds and must report to the Attorney General's Office on the status of refunds within 30 days.

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