President Biden officially called on Congress to pass a bill to prevent so-called “junk” fees — but the Federal Trade Commission is already working on its own rule to crack down on them.
But the FTC — which made waves recently by proposing a rule to broadly ban noncompete agreements — has already officially asked the public to weigh in on a rule that would crack down on so-called “junk fees” and the tactics by which companies impose them. The FTC first asked for comment in October, but in December extended the public comment period until Feb. 8, 2023, after receiving more than 10,000 comments.
The FTC noted these fees can be “hidden" by misrepresenting optional services and upgrades as mandatory or charging for products or services with little to no value. The FTC gave as an example customers purchasing tickets or booking a hotel room only to find a surprise fee at the checkout.
Robert Freund, advertising and e-commerce attorney at Robert Freund Law, APC, said the FTC appears to be interested in expanding its rule to explicitly cover coaching and e-commerce services.
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