Confidentiality Agreements for Airline Compensation: What You Need to Know

2023-12-18 06:36:28

Major Canadian airlines are asking some of their passengers who want compensation for delays or cancellations to sign non-disclosure agreements if they want to get their money.

Passengers who sue after a big delay or canceled flight are often offered money. This supposed gesture of goodwill, however, has a catch: passengers must sign a confidentiality agreement and drop their lawsuit.

The Canadian Press contacted more than 20 Canadian airline customers who had to endure this procedure. Some rejected the offer, others accepted it. It appears the highest amount was a thousand dollars.

For example, Colleen Dafoe was scheduled to leave in December 2022 for the Dominican Republic with her husband and daughter to celebrate her 50th birthday, but the flight was canceled by WestJet.

The company offered to leave more than 10 days later, well after the couple’s vacation dates, she said. Ms. Dafoe instead sued WestJet in small claims court. A company lawyer then offered them a full refund of the tickets on one condition: signing a non-disclosure agreement.

My husband and I procrastinated. Part of us wanted us to stand our ground and refuse this confidentiality clause because airlines shouldn’t silence people when they don’t follow the rules, Ms. Dafoe says.

However, the couple ended up accepting the agreement which prohibits them from revealing the amount they obtained.

WestJet says it does not comment publicly on non-disclosure agreements, regardless of the cause or circumstances.

Mode of operation

This case appears to be part of a pattern adopted by the two main Canadian airlines, WetJet and Air Canada, which initially offered vouchers ranging from $150 and $300 to complaining customers. If they refuse the offer and go to court, the companies agree to reimburse them in full or may even offer them more money if a non-disclosure clause is added to the agreement.

Air Canada says these confidentiality clauses are common for resolving a dispute. She says she pays compensation when the client deserves it.

These clauses are designed to protect the integrity of the negotiation process because every case is different. We cannot compare the regulations with each other.

Consumer rights advocates reject the idea that a non-disclosure agreement is commonplace.

According to Sylvie De Bellefeuille, budgetary and legal advisor at Option consommateurs, airlines mainly want to suppress unfavorable reactions, both on the Internet and in court.

They do not want to create precedents. They don’t want to read on social media that someone has reached a $500 agreement with Air Canada, she says.

Sometimes settlements are lower than the amounts claimed. Many clients don’t know they can refuse a first offer, says John Lawford, executive director of the Public Interest Advocacy Center.

These powerful companies use great means. It’s scandalous, it’s petty, it’s being a bad sport. However, the amounts involved are not high. They want to muzzle critics. Silence is imposed on what could highlight other problems within the airlines.

From a strictly commercial point of view, airlines are acting reasonably under the current rules, agrees Gabor Lukacs, president of the advocacy group Travelers Rights. He emphasizes that these clauses prevent the proliferation of cases before the courts.

From an economic point of view, they are making the right choice. Airlines are neither good nor bad. They simply opt for the optimal strategies in a game where the dice are loaded against the passengers.

61,000 complaints

Under the Air Passenger Protection Regulations, airlines are required to provide passengers with either a refund or a rebooking, at the passenger’s option, in the event of a flight cancellation or extended delay due to an unrelated situation. of the airline’s wishes.

As of December 5, some 61,000 complaints were pending before the Canadian Transportation Agency, which oversees this program. Many passengers prefer to avoid going through this process – which is only implemented after the airline has rejected a complaint – because of the wait, which can reach two years in some cases.

To speed up the process and convince passengers to go through regulatory authorities rather than going to court, the Agency created complaints resolution officer positions. Around fifty people were hired. Their training began in mid-August. The Office plans to hire 50 more people next year.

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