Penalty Amount
$2,000,000
New Jersey Attorney General Jennifer Davenport announced a multistate settlement with NCL Bahamas, Ltd. (Norwegian Cruise Line) resolving allegations of deceptive sales practices and unfair cancellation, refund, and future cruise credit policies during the COVID-19 pandemic. The settlement requires NCL to pay $2 million to participating states, implement employee training and management approval processes for sales communications during disasters, and prohibits deceptive sales statements and prioritizing sales over consumer health and safety. NCL has already issued over $3 billion in refunds and future cruise credits to consumers nationwide related to the underlying allegations.
NCL must pay $2,000,000 total to the multistate coalition (including $138,999.64 to New Jersey). NCL is permanently enjoined from making deceptive or unsubstantiated sales statements, and from prioritizing sales incentives over consumer health and safety during declared disasters. NCL must implement mandatory training for consumer-facing employees on proper sales communications, and designate senior management to pre-approve all sales communications during future disaster declarations. These remedies are in addition to over $3 billion in refunds and future cruise credits already issued to consumers by NCL related to the allegations.
In-house legal teams should review customer-facing cruise booking agreements and terms of service to ensure cancellation, refund, and future cruise credit policies are clear, non-deceptive, and compliant with consumer protection standards. Vendor agreements with marketing, sales, or travel partners must include prohibitions on deceptive or unsubstantiated sales statements, and require senior management pre-approval of all sales communications during disaster declarations. Employee contracts and training materials should be updated to mandate sales communication compliance training, and internal policies should designate clear approval workflows for sales materials during public health emergencies or disaster declarations. Force majeure and disaster response clauses should be reviewed to ensure they do not prioritize corporate sales incentives over consumer health and safety.
Entity
NCL Bahamas, Ltd.
Industry
OtherOfficial Press Release
https://www.njoag.gov/attorney-general-davenport-announces-multistate-settlement-with-norwegian-cruise-line/
2026 0413 New Jersey Agreement and Appendix A executed 4.06.
http://www.njoag.gov/wp-content/uploads/2026/04/2026-0413_New-Jersey-Agreement-and-Appendix-A-executed-4.06.26.pdf
New Jersey Attorney General Enforcement Page
https://www.njoag.gov/about/divisions-and-offices/division-of-consumer-affairs/
"announced a settlement with Norwegian Cruise Line, specifically NCL Bahamas, Ltd."
"NCL is required to pay $2,000,000 to the states, including $138,999.64 to New Jersey."
"multistate investigation of NCL’s sales practices and cancellations procedures during the COVID-19 pandemic."
"allegations that NCL made misleading and false statements to consumers during the COVID-19 pandemic."
"Consumers expressed that they received confusing and conflicting information about cruise bookings and cancellations, and they reported that NCL implemented unfair policies regarding future cruise credits and refunds associated with cruises cancelled as a result of the COVID-19 pandemic."
"Joining Attorney General Davenport in the settlement are the attorneys general of Connecticut, Florida, Illinois, Louisiana, Minnesota, North Carolina, Nevada, Pennsylvania, Texas, Utah, and Wisconsin."
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