Attorney General Jennifer Davenport announced on Apr. 13 a settlement between the Division of Consumer Affairs and Norwegian Cruise Line, specifically NCL Bahamas, Ltd., following a multistate investigation into the company’s sales and cancellation practices during the COVID-19 pandemic.
The investigation focused on claims that Norwegian Cruise Line gave misleading or false information to consumers about cruise bookings and cancellations during the pandemic. Consumers reported receiving unclear guidance about refunds and future cruise credits after their trips were canceled due to COVID-19.
“During the height of the pandemic, Norwegian Cruise Line was misleading consumers in order to boost its sales,” said Attorney General Davenport. “Corporations should not be able to take advantage of consumers, especially during a public health emergency. We are pleased that consumers have now received billions of dollars back in refunds and credits from Norwegian Cruise Line, and we will continue to work with our multistate partners to hold businesses accountable when they deceive consumers and siphon away their hard-earned money.”
“This settlement sends the message that in times of crisis, companies need to put people before profits,” said DCA Acting Director Jeremy E. Hollander. “At all times, they must be truthful and their practices must remain fair to all consumers.”
As part of the agreement, NCL will pay $2 million across participating states—including $138,999.64 allocated for New Jersey—in addition to more than $3 billion already issued nationwide as credit card refunds or future cruise credits between March 2020 and November 2025.
NCL is now required under settlement terms to stop making deceptive or unsupported sales statements during emergencies. The company must also prioritize consumer health over incentivizing sales when disaster declarations are in effect. Additionally, NCL will provide mandatory training for employees who interact with customers regarding appropriate communication practices; senior management must approve any new sales communications before use during declared disasters.
The New Jersey Attorney General’s office holds statewide authority for law enforcement oversight, prosecution of offenses, legal representation for state agencies, victim advocacy programs, crime lab support services, regulation enforcement efforts including consumer protection initiatives according to the official website.
Joining Davenport in this action were attorneys general from Connecticut, Florida, Illinois, Louisiana, Minnesota, North Carolina, Nevada, Pennsylvania, Texas, Utah and Wisconsin.
