Biden set to outlaw ‘junk fees’
The Biden Administration is set to formally implement measures to end so-called junk fees.
These are hidden costs levied after a consumer transaction such as some airline fees and resort fees at hotels.
The White House is working with the Federal Trade Commission and Consumer Financial Protection Bureau to set rules.
Junk fees cost American consumers billions each year.
Biden’s previous threats to legislate has seen some companies fall into line and promise to change their pricing models.
This has happened with some hotel groups and online travel platforms.
The administration is also targeting concert and sports event ticketing providers.
Government officials say hidden fees imposed after the initial purchase hamper the ability of consumers to comparison shop.
“Such fees also unfairly disadvantage honest businesses, impede innovation, and disproportionately impact small enterprises,” a White House press release said.
The Federal Trade Commission proposed a rule that would require companies to detail the complete cost upfront before payment.
It would be required for event tickets, hotels, rentals, and other various sectors.
Violations would lead to large penalties and refunds to customers.
The Consumer Financial Protection Bureau is proposing a similar rule for banks and financial institutions.
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TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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