If you’ve ever purchased concert tickets or reserved a hotel stay, you may have been shocked to see that the total amount you had to pay at checkout exceeded your initial estimate.
These are referred to as “junk fees” because they are hidden processing or service fees that are only revealed when it is time to make a payment. The Consumer Financial Protection Bureau estimates that the average annual cost of these fees to a family of four is $3,200.
State Representative Bob Morgan (D-Deerfield) stated, “We don’t know that we’re paying for that, we don’t know that it’s going to be tacked on. It’s not a tax. It’s just an extra fee, so it really is deceptive.”
These fees would be prohibited by a bill in the Capitol. Rather, buyers would pay the amount listed for the good or service. After passing the House on Thursday, the plan is now in the Senate for additional review.
“This is going to help consumers because when we put the pricing up front, consumers can make the choice that’s right for them,” Morgan stated.
“We’re all speaking from the same page, making sure that the industries out there that are charging these fees have better get in line, because we’re going to make sure by rule or law that these kinds of practices stop,” Morgan stated.
Federal initiatives have also been made in this regard. The Federal Trade Commission (FTC) revealed a proposed rule change in October that would prohibit companies from charging garbage fees.
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“But a lot of times at the federal level, it takes a long time,” Anna Aurilio, the senior campaigns director at the Economic Security Project, stated. “And that’s why we were really happy to be there with representatives from four different states that are working on state level junk fee legislation because we think, number one, states know what the experiences of their own citizens [are], they’re much closer, and number two, they can act much more quickly.”
