Norwegian Cruise Line Pays $2M to Settle Multistate COVID Probe

Norwegian Cruise Line has agreed to pay $2 million to resolve a multistate investigation into its COVID-19-era sales and cancellation practices, a settlement that also adds new restrictions on how the company can market sailings and communicate with customers during future disaster declarations.

What the states alleged

The agreement follows a multistate investigation led by state attorneys general offices, prompted by consumer complaints about how Norwegian handled bookings, cancellations, refunds, and future cruise credits during pandemic-related disruptions. Consumers reported receiving inconsistent information about what would happen if they canceled and how refunds or credits would be processed.

Connecticut Attorney General William Tong’s office said the inquiry began after complaints that Norwegian representatives discouraged cancellations early in the pandemic, including by making inaccurate claims that the coronavirus could not survive in tropical temperatures. Tong’s office also pointed to concerns about refund and credit policies that consumers said were difficult to understand and navigate.

Refunds and credits cited in settlement documentation

Settlement documentation outlines nationwide reimbursement activity by Norwegian over a multi-year period tied to impacted cruises. Between March 13, 2020, and November 30, 2025, Norwegian Cruise Line reimbursed more than $3 billion nationwide through a mix of direct refunds and credits for future travel.

• $2,606,390,428 in credit card refunds, representing direct repayments to customers for affected sailings during the period covered by the agreement.
• $504,953,348 in future cruise credits, reflecting credit issued for later travel in connection with cancellations and disruptions tied to COVID-19.

New limits on marketing and sales communications during emergencies

Beyond the $2 million payment, the settlement requires changes to Norwegian’s sales communications and internal controls when emergencies affect travel. The agreement restricts misleading statements and adds compliance steps intended to ensure senior-level review of certain messaging during future disaster declarations.

• The company is barred from creating or distributing sales communications that are misleading, deceptive, or not supported by evidence, particularly in disaster or health-crisis scenarios.
• The agreement prohibits incentivizing sales in a way that prioritizes revenue over consumer health and safety during disaster declarations.
• Norwegian must designate a senior management team member to approve certain sales communications before they are used during future disasters, and it must conduct mandatory training for consumer-facing employees focused on sales communications.

Who joined the settlement and what officials said

The settlement involves Norwegian Cruise Line entities, including NCL Bahamas, Ltd., and was joined by attorneys general from Connecticut, Florida, Illinois, Louisiana, Minnesota, Nevada, North Carolina, New Jersey, Pennsylvania, Texas, Utah, and Wisconsin. The $2 million payment is described as penalties paid to the participating states, and Nevada Attorney General Aaron Ford’s office said Nevada’s share totals $31,359.66.

Ford described the resolution as a consumer-protection measure focused on how travel companies communicate during emergencies. “Companies cannot put profits over the health of their customers,” Ford said. “When they do, I will step in to protect Nevadans to hold bad actors accountable.” He also said, “I am proud of the work my Bureau of Consumer Protection did to facilitate this settlement on behalf of Nevadans.”

New Jersey Attorney General Jennifer Davenport said the multistate action reflects states’ intent to prioritize consumer protections and corporate accountability during emergencies.

Norwegian Cruise Line Holdings said it cooperated with state authorities and has taken steps to strengthen its practices so communications meet “high standards of accuracy, transparency, and responsibility,” while emphasizing that guest and crew health and safety remain a top priority.

The agreement also states Norwegian did not admit to violating any laws as part of the resolution. State attorney general offices issued settlement announcements that included releases from Nevada on April 10 and from New Jersey on April 13, and the settlement’s requirements now set tighter controls on what frontline sales channels can communicate to consumers during future emergencies.

Frequently Asked Questions (FAQs)

What led to the investigation into Norwegian Cruise Line’s sales practices?

State attorneys general said the investigation was prompted by consumer complaints about COVID-19-era bookings and cancellations, including reports of inconsistent information about refunds and future cruise credits and allegations that representatives discouraged cancellations by claiming the coronavirus could not survive in tropical temperatures.

How much money is Norwegian Cruise Line paying under the settlement?

The settlement requires $2 million in penalties to be paid to the participating states. Nevada Attorney General Aaron Ford’s office said Nevada’s share totals $31,359.66.

What time period do the refund and credit figures cover?

The settlement documentation cites reimbursements between March 13, 2020, and November 30, 2025, totaling more than $3 billion nationwide, including $2,606,390,428 in credit card refunds and $504,953,348 in future cruise credits.

What changes does the settlement require for future disasters?

The agreement bars misleading or unsupported sales communications, prohibits incentives that prioritize revenue over consumer health and safety during disaster declarations, requires senior management approval of certain communications during future disasters, and mandates training for consumer-facing employees focused on sales communications.

Did Norwegian Cruise Line admit it broke any laws?

No. The settlement specifies that Norwegian Cruise Line did not admit to violating any laws as part of the agreement.