Sweeping New Rules Would Ban Hidden 'Junk Fees' Across the Economy. Here's What It Means.

[justaprogressive]

The Biden Administration announced a slew of rules on Wednesday intended to combat the rampant and unchecked use of hidden and junk fees across the economy. The fees impact everything from cable bills to concert and movie tickets to rental cars to hotels and apartments and bank accounts. Even some restaurants have started presenting hidden fees with the bill. Companies wait until the last second before purchase to disclose the fees, reducing the likelihood people will walk away from the purchase and making it nearly impossible to accurately compare products and prices before committing.

“The Biden administration has made junk fees a consumer protection priority, which is phenomenal,” said Erin Witte, director of consumer protection for the non-profit organization Consumer Federation of America. “What we’ve seen is it’s really a bipartisan issue. It affects every single person in every consumer-facing industry.”

The new rules, which are proposed under the Federal Trade Commission and the Consumer Financial Protection Bureau, reach across the entire economy. The FTC rule would make it an illegal deceptive practice to misrepresent the “total costs of goods and services” by omitting fees people must pay from advertised prices and “misrepresenting the nature and purpose of fees.” For example, if a ticket to an event can only be bought online and that purchase comes with a mandatory “convenience fee” or “service fee,” that fee would have to be included in the upfront ticket price. The same would go for resort fees, destination fees, and any other bullshit fee that magically makes the thing you’re buying more expensive once you hit the checkout cart. The CFPB proposed rule targets the financial sector specifically, banning fees for “providing basic information” to customers like checking account balances.

[link:https://dnyuz.com/2023/10/12/sweeping-new-rules-would-ban-hidden-junk-fees-across-the-economy-heres-what-it-means/|

[dalton99a]

1. This desperately needed action should be publicized widely.

[mopinko]

2. u cant just ax fees. hidden is the operative word here. this is about disclosure.

all we can rly MAKE them do it not hide them.
read it carefully.

[in2herbs]

3. These same rules should apply to financial/investment advisors. nt

[republianmushroom]

4. Good