The commission has extended the public comment period for a proposed rule targeting junk fees to ensure more voices are heard.
01/03/2024 2:45 P.M.
1.5 minute read
About a year after it started to consider regulating “junk fees,” the Federal Trade Commission issued a proposed rule on fees charged for goods and services that have little to no value for consumers.
Initially slated to conclude Jan. 8, 2024, the public comment period for the proposed rule has been extended by 30 days, now closing on Feb. 7, 2024.
The extended public comment period allows for a more inclusive and thorough examination of the proposed rule, ensuring that diverse voices are heard in shaping the final regulations, according to the FTC.
The FTC received more than 12,000 comments on whether a rulemaking would help eliminate these fees and how they impact consumers’ personal spending or businesses, according to a news release from the FTC.
“Junk fees” were defined by the FTC as:
- Unnecessary charges for “worthless, free, or fake products or services.”
- Unavoidable charges “imposed on captive consumers.”
- Surprise charges that secretly push up the purchase price.
“The proposed rule would ban businesses from running up the bills with hidden and bogus fees, ensure consumers know exactly how much they are paying and what they are getting, and help spur companies to compete on offering the lowest price. Businesses would have to include all mandatory fees when telling consumers a price, making it easier for consumers to comparison shop for the lowest price,” according to the FTC.
The proposed rule also includes enforcement authority for the FTC to secure refunds for consumers and pursue monetary penalties against companies that do not comply with the regulation.
To participate in the public comment period, interested parties can find information on how to submit comments in the Federal Register notice announcing the extension.
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