Amplify: Biden Administration Cracks Down on Hidden Junk Fees
Junk fees are hidden and surprise fees that companies sneak onto customer bills. The Biden-Harris Administration is cracking down on these hidden fees across the economy and requiring companies to show all-in pricing upfront. This would mean no more surprise fees when applying for rental housing, purchasing a concert ticket, booking a hotel, renting a car, and more.
These hidden fees increase the costs consumers pay: studies have found that consumers pay upward of 20 percent extra when the actual price of the product or service is not disclosed upfront.
Highlights:
“The Federal Trade Commission (FTC) is proposing a rule that would ban businesses from charging hidden and misleading fees and require them to show the full price up front. The rule would also require companies disclose up front whether fees are refundable. This would mean no more surprise resort fees at check out or unexpected service fees to buy a live event ticket.”
“The Consumer Financial Protection Bureau (CFPB) is taking action to require large banks and credit unions to provide basic information to consumers without charging fees—meaning no more fees for basic services like checking bank account balances, obtaining a payoff amount for a loan, or getting account information needed for applications.”
“The Department of Transportation (DOT) has secured significant commitments by major airlines to improve service. Previously, none of the 10 largest U.S. airlines guaranteed meals or hotels when they caused a cancellation or significant delay and no airline guaranteed that parents can sit with their children for free. Now, thanks to DOT’s efforts, 9 of the 10 largest airlines guarantee hotels, 10 airlines to guarantee meals, and 4 airlines guarantee fee-free family seating.”
“New findings show the crack down on junk fees is already saving consumers billions of dollars.”
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