The Biden administration is continuing to move forward with its plan to eliminate “junk fees,” sharing on Wednesday that it has proposed a new rule for the Federal Trade Commission that would ban the “hidden and bogus” charges.
“The proposed rule would prohibit corporations from running up the bills with hidden and bogus fees, requiring honest pricing and spurring firms to compete on honesty rather than deception,” FTC Chairwoman Lina Khan said in a call with reporters, The Hill reported.
The new rule will require corporations to include all mandatory fees when pricing their goods. The administration says the move would make it easier for customers to compare prices.
If the rule is put in place, it will prohibit surprise or mislabeled fees in event ticketing, banking, hotel booking, car and apartment rentals, and goods in other industries.
“These junk fees can add up to hundreds of dollars, weighing down family budgets and making it harder to pay family bills,” Biden said during a press conference on Wednesday.
The White House says that the junk fees currently cost Americans tens of billions every year and need to be shown to consumers upfront.
If the rule is accepted, the FTC will have “enforcement teeth” that will allow it to secure funds for customers and seek penalties against companies when possible, according to a White House press release.
Biden first began discussing junk fees last year, saying he would take action against extra charges as a means of combating inflation.
The talks began after prices for Taylor Swift’s “Era’s Tour” quickly began jumping in price, with fans having to shell out thousands of dollars to see the pop star in what should have been the cheapest seats.
The White House announced earlier this year that Ticketmaster’s parent company, Live Nation, would begin pricing their tickets with every fee included. Other companies like SeatGeek and Airbnb agreed to do the same.