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FTC cracking down on 'junk fees' as consumers face 'fee-flation'

Debit Card Fees
Posted at 3:00 AM, Feb 02, 2023
and last updated 2023-02-02 11:46:35-05

It happens all the time. You go to make a purchase but when it comes time to check out, the final price is much higher because of added fees.

Service charges, resort fees, convenience fees (that don't feel convenient at all)... Some consumers are fed up with what has been dubbed "fee-flation."

"All the time, hotel tickets, airports. Flying anywhere, there are tons of fees everywhere," one Valley shopper said. He feels fees are unavoidable.

Another shopper said added fees make price comparisons nearly impossible.

"If you're trying to budget, it doesn't make me happy at all."

Now, the Federal Trade Commission is looking to crack down on "junk fees", describing them as "unnecessary, unavoidable, or surprise charges that inflate costs while adding little to no value for consumers."

Junk fees can show up in a variety of ways with companies - from hidden fees consumers did not consent to, or optional services or upgrades which are misrepresented as mandatory.

The agency is now asking the public to weigh in on potential rules to crack down on junk fees.

Consumers can share how they've been harmed by junk fees and ideas on potential regulations.

Generally, the FTC lacks the authority to seek penalties against first-time violators or the ability to facilitate a quick remedy for consumers in instances in which fees violate the FTC's prohibition on unfair or deceptive practices. But, if the agency creates a junk fee rule, it will be able to seek remedies with more authority against companies.

Consumers have until February 8 to submit comments. You can do so electronically at Regulations.gov.

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