FTC Proposes to Ban 'Junk' Fees

The FTC proposed new rules for junk fees Wednesday in an effort to "eliminate these unfair and deceptive charges," said a news release. The agency would ban companies from advertising prices that "hide or leave out mandatory fees." Companies would also be banned from misrepresenting fees known as bogus fees. "By hiding the total price, these junk fees make it harder for consumers to shop for the best product or service and [they] punish businesses who are honest upfront," said Chair Lina Khan: "The FTC’s proposed rule to ban junk fees will save people money and time, and make our markets more fair and competitive.” The agency said the proposed rule would save consumers "more than 50 million hours per year" on "searching for the total price in live-ticketing and short-term lodging alone." The agency wants comments 60 days after Federal Register publication. At the FCC, Chairwoman Jessica Rosenworcel noted the commission's broadband consumer labels will "increase price transparency and reduce cost confusion." Consumers "deserve to know exactly what they are paying for when they sign up for communications services," Rosenworcel said. The U.S. Chamber of Commerce criticized the proposed rule. “Every minute of every day, Americans engage in close to 400,000 transactions, buying and selling goods and services," said Chief Policy Officer Neil Bradley: "It is baffling that the administration believes it is going to help consumers by regulating how businesses price all of those transactions."