Florida Investigates Legality of Cruise Lines’ Fuel Surcharges

Responding to more than 150 consumer complaints about cruise line fuel surcharges, the Florida Attorney General’s office is reviewing whether the charges were properly and legally administered.

The office is reviewing complaints about whether cruise lines can retroactively impose a fuel surcharge to passengers, said Sandi Copes, press secretary for the state’s attorney general’s office.

Citing record-high fuel costs, most cruise lines implemented fuel surcharges in November, starting with Carnival Corp.’s six North American brands, which added a charge of $5 per person, per day, on all sailings. Royal Caribbean Cruises Ltd. and NCL Corp. shortly followed suit. Carnival and RCCL applied surcharges to bookings that were already paid in full.

In December, both companies reversed the retroactive surcharges on fully paid bookings in Canada, after the Association of Canadian Travel Agencies challenged Carnival on the legality of the surcharge. In at least two Canadian provinces, Quebec and Ontario, it is illegal for companies to raise prices on consumer products that are already paid for in full, ACTA said.

In a note, UBS equity research analyst Robin Farley said that Carnival and RCCL’s shares were “under pressure” due to concerns about the Florida Attorney General’s investigation. Farley wrote that if the cruise lines were not able to charge the fee, they would likely incorporate it in cruise fares.