FTC Junk Fees Rule Aims to End Deceptive Checkout Practices

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FTC Junk Fees Rule Aims to End Deceptive Checkout Practices
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The FTC's new Junk Fees Rule targets deceptive business practices that surprise customers with additional costs at checkout. The rule prohibits bait-and-switch tactics and requires businesses to clearly display total prices, including all fees, upfront.

The Federal Trade Commission ( FTC ) hopes its new Junk Fees Rule will put an end to deceptive practices that surprise customers with additional costs at checkout. The rule prohibits bait-and-switch tactics and requires businesses to prominently display total prices, including all fees, upfront. Travel agents and consumers have long been vocal about the impact of these hidden fees on travel budgets.

Leigh Elizabeth Israel, owner of Avondale Travel, said these fees can 'make or break a trip,' as they can add hundreds of dollars to the initial cost. John Brown, who bought tickets for a WWE live holiday tour, shared his frustration, noting that a $25 ticket can end up costing $45 to $50 after fees are added. He said he even purchased his tickets in person to avoid the extra charges. The Economic Council of Advisers estimates that hidden fees cost American households $650 annually. The FTC's new guidelines, set to take effect 120 days after publication in the Federal Register, are the latest step in the agency's efforts to protect consumers and promote competition

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