On Jan. 10, 2025, FTC issued final rule in federal register, effective May 12, 2025.
On Oct. 11, FTC proposed rule to prevent unfair and deceptive fees.
FTC proposed rule to ban junk fees, hidden and bogus fees that can harm consumers.
Proposed rule entitled Rule on unfair or deceptive fees and would add 16 CFR 464.
Follows proceeding requesting input on rule that would help eliminate fees, #151441.
Received more than 12,000 comments on how fees affect personal spending/business.
Proposed Rule
Would prohibit businesses from advertising prices that hide/leave out mandatory fees.
Additionally, would prohibit sellers from misrepresenting fees and require them to disclose upfront the amount and purpose of the fees and whether they are refundable.
Would allow FTC to secure refunds for harmed consumers, seek monetary penalties.
Consultation
Comments must be received on or before 60 days after publication in federal register.
In Oct. 2023, White House reported on new actions by CFPB and FTC, see #187720.
Nov. 2023 FTC Federal Register
On Nov. 9, 2023, FTC published notice of proposed rulemaking in the federal register.
Dec. 2023 FTC Comment Period Extension
On Dec. 20, 2023, FTC extended public comment period on junk fees to Feb. 7, 2024.
Jan. 2024 Fed Reg Comment Extension
On Jan. 2, 2024, FTC published notice of extended comment period in federal register.
On Feb. 8, PEN AG issued joint letter in support of FTC ban on junk fees, see #200741.
Mar. 21, 2024 FTC Virtual Hearing
On Mar. 21, 2024, FTC notified virtual hearing on proposed rule unfair/deceptive fees.
Hearing will be open to the public, interested organizations may give oral statements.
Commenters requested to present their positions at a hearing, limited to 15 minutes.
Administrative law judge will preside, hearing to be held on Apr. 24, 2024 at 10 ET.
Mar. 27, 2024 FTC Hearing Notice
On Mar. 27, 2024, FTC published notice of Apr. 24 hearing, in the federal register.
Dec. 2024 FTC Final Rule
On Dec. 17, 2024, FTC reported final junk fees rule to prohibit bait-and-switch pricing.
Prohibits other tactics used to hide total prices and bury junk fees in the live-event ticketing and short-term lodging industries which harm consumers/honest businesses.
Adds part 464 under 16 CFR (16 CFR 464), entitled Rule on unfair or deceptive fees.
Bans hidden junk fees when consumer books a hotel or purchases event tickets.
Specifies that it is an unfair and deceptive practice for businesses to offer any price of live-event tickets or short-term lodging without clearly disclosing the total price.
Businesses must clearly make certain disclosures before consumer agrees to pay.
The final rule’s effective date will be 120 days after publication in the federal register.
On the same day, White House statement from President Biden praised the final rule.
Jan. 2025 Fed Reg Final Rule
On Jan. 10, 2025, FTC issued final rule in federal register, effective May 12, 2025.
