FTC announces proposed rule to ban 'junk fees'

The Federal Trade Commission rolled out a proposed rule Wednesday that would ban what it calls hidden and bogus fees that can cost consumers an extra $80 billion every year, officials said.

The Federal Trade Commission rolled out a proposed rule Wednesday that would ban what it calls hidden and bogus fees that can cost consumers an extra $80 billion every year, officials said.

“This is real money. It really adds up for people,” FTC Chair Lina Khan said in an interview that aired Wednesday on NBC’s “TODAY” show.

The proposed rule would make it clearer when extra fees are being charged, like at hotels and at live-ticket events, the agency says.

It would bar businesses from using hidden fees, or charges that the FTC calls “bogus fees” and which are misrepresentations, the commission said in a statement.

Biden endorses FTC rule to ban hidden junk fees 'across the economy'Oct. 11, 202301:36It would also prohibit businesses from advertising prices that leave out mandatory fees, a practice that causes consumers to expect to pay one price, only to see the actual cost soar, according to the FTC.

https://www.nbcnews.com/politics/politics-news/ftc-announces-proposed-rule-ban-junk-fees-rcna119830

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