TRENTON—New Jersey is among a group of states that reached a settlement with Norwegian Cruise Line over how the company handled cancellations and refunds during the COVID-19 pandemic, resolving a multiyear investigation into widespread consumer complaints. The agreement, announced April 13, follows reports that customers received inconsistent or unclear information about canceled cruises and were often steered toward future cruise credits instead of refunds.
New Jersey residents, many of whom book cruises through the New York–New Jersey travel market, were among those affected during the early months of the pandemic, when global travel shut down with little warning.
A Settlement That Reflects What Already Happened
Under the agreement, announced in this state by NJ Attorney General Jennifer Davenport, Norwegian Cruise Line will pay $2 million to participating states. The company has already issued more than $3 billion in refunds and credits to consumers nationwide between March 2020 and November 2025. Most of those refunds and credits were issued during the pandemic itself, meaning the settlement primarily formalizes the outcome of disputes that have largely already been resolved.
As cruise operations halted in 2020, state agencies across the country received complaints from travelers who said they struggled to get clear answers about cancellations and refunds. Consumers reported conflicting information about eligibility, delays in receiving money back, and offers of future cruise credits in place of cash refunds. Regulators concluded that some of the company’s communications contributed to confusion about available options.
A Complex Legal Landscape
The dispute unfolded during an unprecedented disruption to global travel. Cruise operators often relied on contract terms that allowed them to offer credits instead of refunds under certain conditions. At the same time, state and federal consumer protection laws require that companies communicate clearly and avoid misleading statements. That distinction became central to the investigation, focusing on how information was presented to consumers rather than the cancellations themselves.
Part of a Broader Industry Response
Norwegian Cruise Line was one of several travel companies navigating similar challenges during the pandemic. Federal agencies, including the Federal Trade Commission and the U.S. Department of Transportation, reported increases in complaints related to travel refunds in 2020 and 2021. Across the industry, companies faced government-mandated shutdowns, sharp declines in revenue, and uncertainty about when operations could resume. In many cases, travel providers used credits to manage cash flow while continuing to process refunds over time.
As part of the settlement, Norwegian Cruise Line must avoid deceptive or unsubstantiated sales practices, provide clear and consistent communication to customers, train employees on consumer-facing messaging, and require senior-level review of marketing during future emergencies. The measures are intended to guide how companies handle similar situations going forward.
What It Means for New Jersey
New Jersey joined 11 other states in the settlement, including Connecticut, Illinois, Florida, Texas, and Pennsylvania. For New Jersey consumers, the case underscores the role of state agencies in monitoring business practices during large-scale disruptions, particularly when travel plans and personal finances are affected. While most customers have already received refunds or credits, the agreement sets clearer expectations for how companies must communicate in future crises.
The settlement reflects the reality of the early pandemic: companies navigating sudden financial strain, and consumers seeking clarity about their money. Years later, the financial disputes have largely been settled. What remains is a set of rules aimed at ensuring that, in the next disruption, consumers receive clearer and more consistent information from the start.
Sources
• New Jersey Office of the Attorney General, “Attorney General Davenport Announces Multistate Settlement with Norwegian Cruise Line” (April 10, 2026)
• Federal Trade Commission, “Recent FTC cases resulting in refunds”
• U.S. Department of Transportation, travel refund enforcement guidance
Tags
New Jersey, Norwegian Cruise Line, Consumer Protection, COVID-19, Travel Industry, Refunds, Multistate Settlement, NJ News, Business Regulation, Government Oversight