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SettlementHigh RiskMultistate

Multistate Settlement with NCL Bahamas, Ltd. (Norwegian Cruise Line) Over Deceptive COVID-19 Pandemic Sales and Cancellation Practices

NCL Bahamas, Ltd.April 6, 2026New Jersey Attorney General

Penalty Amount

$2,000,000

Summary

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.

Remedy

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.

Monetary PenaltyInjunctionConsent DecreeCompliance Program

Contract Impact

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.

Contract Search Terms

cancellation policyrefund termsfuture cruise credit clausedisaster declaration provisionssales communication approvalconsumer protection clausemisleading statements warranty

Violation Types

Entity Details

Entity

NCL Bahamas, Ltd.

Industry

Other

Multistate Coalition

Connecticut Attorney GeneralFlorida Attorney GeneralIllinois Attorney GeneralLouisiana Attorney GeneralMinnesota Attorney GeneralNorth Carolina Attorney GeneralNevada Attorney GeneralPennsylvania Attorney GeneralTexas Attorney GeneralUtah Attorney GeneralWisconsin Attorney General

Official Sources

Source Evidence

Entity Name
"announced a settlement with Norwegian Cruise Line, specifically NCL Bahamas, Ltd."
Fine Amount
"NCL is required to pay $2,000,000 to the states, including $138,999.64 to New Jersey."
Violation Types
"multistate investigation of NCL’s sales practices and cancellations procedures during the COVID-19 pandemic."
Violation Types
"allegations that NCL made misleading and false statements to consumers during the COVID-19 pandemic."
Violation Types
"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."
Is Multistate
"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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