Can an airline lose or damage my bag and limit compensation?

What the Law Says

Federal law does not set a fixed dollar cap on airline baggage liability—but it prohibits airlines from using unfair or deceptive practices, including unreasonable limits on compensation for lost or damaged bags.

Under the Airline Deregulation Act, the Department of Transportation (DOT) enforces 49 U.S.C. § 41712, which bans airlines from engaging in 'unfair or deceptive practices' or 'unfair methods of competition.' This includes baggage liability limits that are hidden, unreasonable, or inconsistently applied.

While § 41712 itself doesn’t specify baggage amounts, DOT regulations (based on this statute) require airlines to clearly disclose their baggage liability limits—and cap domestic baggage liability at $3,800 per passenger (as of 2023), unless a higher value is declared in advance. For international flights, the Montreal Convention applies, with a separate limit of approximately $1,780 (SDR 1,288).

Airlines must also meet strict deadlines for handling claims: passengers must file a claim for a damaged bag within 7 days, and for a lost bag within 21 days of the flight’s arrival.

Statutory Text

A person may not engage in an unfair or deceptive act or practice in air transportation or the sale of air transportation, or an unfair method of competition associated with that transportation or sale.

— 49 U.S.C. § 41712 — Unfair and deceptive practices and unfair methods of competition

What to Do

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