The Federal Trade Commission yesterday announced the release of a proposed rule that it claims will save consumers more than $10 billion during the next decade by requiring businesses to include all mandatory fees when telling consumers a price and banning any hidden or bogus fees.
A copy of the proposed rule can be accessed by clicking here.
The federal government has been on a quest for the past two years to end the practice of junk fees being added on to everyday purchases like tickets, hotel rooms, grocery and food delivery apps, and more. After announcing its interest in cracking down on junk fees, the FTC sought public input on whether a rule would help eliminate such charges. More than 12,000 comments were filed. Once the proposed rule is published in the Federal Register, individuals and organizations will have 60 days to submit an additional round of comments. Once those comments are analyzed, the FTC can move forward with publishing a final rule.
“All too often, Americans are plagued with unexpected and unnecessary fees they can’t escape. These junk fees now cost Americans tens of billions of dollars per year — money that corporations are extracting from working families just because they can,” said FTC Chair Lina M. Khan, in a statement. “By hiding the total price, these junk fees make it harder for consumers to shop for the best product or service and punish businesses who are honest upfront. The FTC’s proposed rule to ban junk fees will save people money and time, and make our markets more fair and competitive.”
It does not appear as though the proposed rule will have a private right of action, but the FTC did say it will have “enforcement teeth,” because the agency will be allowed to secure refunds for harmed consumers and seek monetary penalties against companies that do not comply with a final rule.
