Many consumers describe them as annoying, harmful, invisible, and all too common. They may be talking about nuisance pests, and in some ways, trash fees — fees that some companies try to sneak past people in an attempt to get into their wallets — are similar to their six-legged counterparts. In November 2022, the FTC issued an advance notice of proposed rulemaking soliciting your comments about unfair or deceptive practices related to fees. We received 12,000 comments from consumers, businesses, law enforcement and others. Based on what you’ve told us and the experience gained from decades of litigating trash fees, the FTC is considering a proposed unfair or deceptive fee rule, and we’re asking for your input again.
When you look through the public comments we received on the 2022 advance notice of proposed rulemaking, you come to the conclusion that people are fed up, fed up, and annoyed when it comes to trash fees. Commenters noted that garbage fees are prevalent in a variety of consumer transactions—making hotel reservations, purchasing concert tickets, renting a room, having food delivered, renting a car, and paying telecommunications bills, to name just a few examples. – Announcement of Notice of Proposed Rulemaking.
What’s the best way to stop fake and hidden charges? This is the next step in the FTC’s efforts. For years, the agency has used the FTC Act’s broad ban on “unfair and deceptive acts or practices” to challenge trash fees, but does the widespread consumer harm caused by these misleading practices indicate we need a new approach? The Notice of Proposed Rulemaking delves into the economics of trash fees and outlines the FTC’s rationale for why we believe new rules may be needed to protect consumers.
You’ll need to read the proposed rule for the specifics, but the core focus of the rulemaking is to prohibit hidden or false advertising fees by requiring that advertised prices include mandatory fees and explicitly prohibiting misrepresentations as to the nature, purpose, or amount of fees. cost. For example, the FTC’s proposed rule would state that “it is an unfair and deceptive practice for any business to offer, display, or advertise the amount a consumer may pay without clearly and conspicuously disclosing the total price. and violates the provisions of this Part”. ”. (Capitalized words have specific definitions in the FTC proposal.) Is the proposed ban clear and understandable? Is there any ambiguity in it? what do you think?
The comment period will not be open until the proposed rule is published in the Federal Register, so there is time to gather your thoughts. That’s a good thing because we’ve prepared 37 questions for you to consider when sharing your review with us. They cover basic topics regarding hidden or misleading fees, definitional issues, industry-specific practices, and more.
Remember, we want broad participation in this process. Of course, we want to hear from researchers, law enforcement, businesses and academics, but we also value the serious perspectives of real people who offer realistic suggestions for what needs to be done to end hidden or false accusations. Once the comment period opens, we will publish another post with more details and a link to the Federal Register website where you can submit comments online. Watch the business blog for updates.
We look forward to working together to find a reasonable solution to the waste fee issue. We hope you agree that American consumers deserve just that—and more.
