Featured Image: Danny Howe on Unsplash
The Federal Trade Commission (FTC) has revealed a proposed rule to prohibit junk fees in the US, including those that often accompany buying concert tickets.
The agency launched a proceeding last year requesting public input on whether a rule would help to eliminate these charges. It received more than 12,000 comments on how fees affect their personal spending.
US President Joe Biden called for a limit on junk fees earlier this year.
“All too often, Americans are plagued with unexpected and unnecessary fees they can’t escape. These junk fees now cost Americans tens of billions of dollars per year – money that corporations are extracting from working families just because they can,” said FTC chair Lina M. Khan.
“By hiding the total price, these junk fees make it harder for consumers to shop for the best product or service and punish businesses who are honest upfront. The FTC’s proposed rule to ban junk fees will save people money and time, and make our markets more fair and competitive.”
Consumers said that sellers did not often advertise the total amount they would have to pay, or misrepresent the nature or purpose of certain fees.
The proposed rule would ban businesses from running up the bills with hidden and bogus fees, making sure customers know exactly what they are paying for and how much. The FTC is also proposing that it would be able to enforce the rule, and secure refunds for harmed consumers, as well as seek monetary penalties against companies that do not comply.
Further federal agencies and organisations have joined the FTC to develop and implement rules prohibiting junk fees including the Consumer Financial Protection Bureau.
In June, Live Nation and its ticketing platform Ticketmaster, as well as SeatGeek, announced they will offer all-in pricing in the US, following a meeting between President Biden and representatives from companies that already offered or were considering all-in pricing.
This means that fans will be able to see a clear, total price for shows.
Share this