Current:Home > ScamsBiden proposes a ban on 'junk fees' — from concert tickets to hotel rooms-DB Wealth Institute B2 Reviews & Ratings
Biden proposes a ban on 'junk fees' — from concert tickets to hotel rooms
lotradecoin rewards View Date:2025-01-12 14:35:16
Many consumers are no strangers to added and surprise fees, from buying airline tickets to renting a car or ordering takeout.
These pesky charges are the target of new actions announced Wednesday by the Biden administration, which hopes to stamp out so-called "junk fees" and make it easier for buyers to know what they're paying and why.
"Folks are ... tired of being taken advantage of, and being played for suckers," Biden said in remarks at the White House.
"These junk fees may not matter to the wealthy," he added, "but they sure matter to working folks in homes like the one I grew up in."
One sweeping measure announced Wednesday is a rule proposed by the Federal Trade Commission that would block companies throughout the economy from charging hidden and "bogus" fees, forcing sellers to disclose all mandatory costs up front.
The FTC could charge companies financial penalties for violating the rule, which backers say would allow consumers to compare prices more easily and level the playing field for businesses that display their total costs in advance.
The Consumer Financial Protection Bureau is also ordering banks and credit unions to provide customers with basic information — such as their account balances — without charging fees.
Later this month, the CFPB will propose a separate rule that would force financial institutions to allow customers to easily share their information with other banks if they want to switch, the White House added.
Neil Bradley, executive vice president of the U.S. Chamber of Commerce, said in a statement that the Biden administration's crackdown on "junk fees" would harm consumers.
"Every minute of every day, Americans engage in close to 400,000 transactions, buying and selling goods and services," Bradley said. "It is baffling that the administration believes it is going to help consumers by regulating how businesses price all of those transactions."
But consumer advocates applauded the administration's actions on the fees, which officials estimate cost buyers more than $64 billion each year.
"It is clear that Americans across party lines are tired of being scammed and forced into paying worthless junk fees," Erin Witte, director of consumer protection at the Consumer Federation of America, said in a statement. Witte added that "junk fees" disproportionately affect low-income consumers and communities of color.
Chip Rogers, president and CEO of the American Hotel & Lodging Association, said in a statement that the organization would review the FTC rule but that it "supports creating a single standard for mandatory fee display across the lodging industry – from short-term rental platforms, where fees are most prevalent, to online travel agencies, metasearch sites, and hotels."
Earlier this year, Biden used part of his State of the Union speech to urge lawmakers to pass the Junk Fees Prevention Act, proposed legislation that would limit the excessive fees charged by companies.
veryGood! (961)
Related
- What to stream: Post Malone goes country, Sydney Sweeney plays a nun and Madden 25 hits the field
- David Breashears, mountaineer and filmmaker who co-produced Mount Everest documentary, dies at 68
- MLS Matchday 5: Columbus Crew face surprising New York Red Bulls. Lionel Messi out again for Inter Miami.
- TikTok creators warn of economic impact if app sees ban, call it a vital space for the marginalized
- Head of Theodore Roosevelt National Park departs North Dakota job
- Prosecutors in Chicago charge man with stabbing ex-girlfriend’s 11-year-old son to death
- Texas teens need parental consent for birth control, court rules against fed regulations
- Former four weight world champion Roberto Duran receiving medical care for a heart problem
- Efforts to return remains, artifacts to US tribes get $3 million in funding
- Totally into totality: Eclipse lovers will travel anywhere to chase shadows on April 8
Ranking
- Austin Dillon loses automatic playoff berth for actions in crash-filled NASCAR win
- National Association of Realtors to cut commissions to settle lawsuits. Here's the financial impact.
- Eva Mendes Thanks Ryan Gosling For “Holding Down the Fort” While She Conquers Milan Fashion Week
- Texas teens need parental consent for birth control, court rules against fed regulations
- Efforts to return remains, artifacts to US tribes get $3 million in funding
- When is the Boston St. Patrick's Day parade? 2024 route, time, how to watch and stream
- Bears trade Justin Fields to Steelers, clear way to take a QB such as Caleb Williams with No. 1 pick
- Traveling in a Car with Kids? Here Are the Essentials to Make It a Stress-Free Trip
Recommendation
-
Don't be fooled by the name and packaging: Fruit snacks are rarely good for you. Here's why.
-
These Chic Michael Kors Handbags Are All Under $100 – Add Them to Your Cart Before They Sell Out
-
Internet gambling revenue continues to soar in New Jersey. In-person revenue? Not so much.
-
Rita Moreno Credits This Ageless Approach to Life for Her Longevity
-
Giants trading Jordan Phillips to Cowboys in rare deal between NFC East rivals
-
Mega Millions jackpot soars to $875 million. Powerball reaches $600 million
-
Host, radio station apologize for 'offensive' quip about South Carolina star Kamilla Cardoso
-
Oprah Winfrey opens up about exiting Weight Watchers after using weight loss drug