FTC Announces April 24 Hearing on Proposed Junk Fees Rule

The Federal Trade Commission (FTC) will hold a virtual hearing on April 24, allowing interested organizations to provide oral statements on the agency’s proposed rule to prohibit junk fees.

The hearing will address the FTC’s proposed Rule on Unfair or Deceptive Fees, which was announced in October 2023, the agency said in a Thursday (March 21) press release.

Seventeen commenters have asked to present their positions regarding the proposed rule at an informal hearing, and they will be able to make oral presentations at the April 24 hearing, according to the release.

Oral statements at the hearing will be limited to 15 minutes, the release said. However, these organizations will also be able to submit written documents to the FTC within 14 days after the publication of the notice of the proposed rule in the Federal Register.

The hearing will be open to the public and viewable on the FTC’s website, with a webcast to be posted on the site on the site shortly after the event, per the release. The written documents submitted by the comments will also be placed on the public record.

When announcing the proposed rule in October, the FTC said it would ban businesses from charging hidden and misleading fees, requiring them to disclose the full price upfront.

The rule, if finalized, would apply to industries such as event tickets, hotels, apartment rentals and car rentals, the agency said. Companies failing to comply could face monetary penalties and be required to provide refunds to consumers.

“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,” FTC Chair Lina M. Khan said in the Oct. 11 announcement. “The FTC’s proposed rule to ban junk fees will save people money and time, and make our markets more fair and competitive.”

It was reported in November 2023 that President Joe Biden said: “Junk fees take real money out of the pockets of average Americans. They can add up to hundreds of dollars, weighing down family budgets and making it harder for families to pay their bills.”