The Biden Administration in the USA is taking steps to end hidden “junk fees” charged to consumers after a transaction, such as airline fees and resort fees. It is estimated that these fees cost American consumers billions of dollars annually.
The administration is working with the Federal Trade Commissioner Lina M Khan and the Consumer Financial Protection Bureau to establish rules that would require companies to disclose the complete cost upfront before payment, covering sectors like event tickets, hotels, rentals, and more.
Companies that violate these rules could face substantial penalties and be required to provide refunds to customers.
Biden’s previous threats to legislate have already prompted some companies, including hotel groups and online travel platforms, to change their pricing models and eliminate hidden fees.
The White House’s rationale for ending junk fees is that they hinder consumers’ ability to compare prices and unfairly disadvantage honest businesses, impeding innovation and disproportionately impacting small enterprises.
