The Federal Trade Commission on Wednesday introduced a proposed rule that would prohibit businesses from charging hidden or misleading fees, which the agency said cost consumers tens of billions of dollars a year.
The junk fees, as they are known, show up when consumers purchase airline tickets, book hotels or pay their utility bills, according to the FTC, which argues that tacking fees onto a price toward the end of a purchase allows companies to make their upfront prices appear artificially low. Such fees became a point of frustration for fans who recently faced astronomically high prices to see acts like Beyoncé and Taylor Swift.
“All too often, Americans are plagued with unexpected and unnecessary fees they can’t escape,” FTC Chair Lina Khan said in a statement. “By hiding the total price, these junk fees make it harder for consumers to shop for the best product or service and punish businesses who are honest upfront.”