What’s the impact of eliminating ‘junk fees’?
BIRMINGHAM, Ala. (WBRC) - President Biden is calling on Congress to take action on so called junk fees many of us get charged seemingly everywhere we turn. We’re On Your Side explaining why consumer advocates say these fees are more than a nuisance.
You book a hotel thinking you’ve found a deal and by the time you get to checkout, you’re paying a lot more due to these hidden fees. A lot of times, junk fees don’t give customers anything in return.
You’ll find the fees on concert tickets, hotels, cable bills and a lot more. President Biden is now calling on Congress to act.
Consumer Reports is also asking Congress to pass the Junk Fee Prevention Act that would require ticket sellers to disclose the fees upfront among other things like ban surprise hotel and resort fees. CR also urges the Federal Trade Commission to ban the costly fees. Chuck Bell with Consumer Reports tells us the junk fees can be a financial burden on families.
“Companies are really inventing a lot of excuses to ratchet up prices and charge consumers more. This Junk Fee Prevention Act will really help level the playing field and give ordinary people a fighting chance to contend in this really predatory economy,” Chuck Bell, Programs Director with Consumer Reports said.
The White House says the proposal would save people money allowing you to compare prices, but the Wall Street Journal reports companies could end up raising prices to replace the lost fee revenue.
The FTC has been collecting feedback from the public about junk fees and could act on them as well in the future.
You can read more about junk fees from Consumer Reports here: https://advocacy.consumerreports.org/press_release/consumer-reports-urges-the-ftc-and-congress-to-ban-costly-junk-fees/
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