Cantwell Applauds FTC’s Proposed Rulemaking to Crack Down on Junk Fees Burdening Consumers
October 11, 2023
Cantwell-led TICKET Act currently awaits Senate passage, Answers the President’s call to stop junk fees
U.S. Senator Maria Cantwell (D-Wash.), Chair of the Senate Committee on Commerce, Science and Transportation, applauded today’s announcement by the Federal Trade Commission (FTC) that it is proposing a rule to crack down on consumer-burdening junk fees and require all-in pricing across industries.
“Whether it’s buying a ticket to the game or renting a car for a weekend, consumers should know the total price up front when they’re shopping for goods and services,” Sen. Cantwell said. “I applaud the FTC for proposing a rule to require companies to disclose any fees from the start — making sure the price they say is the price you pay.”
According to the FTC, the proposed rule will ban businesses from charging hidden and misleading fees and require them to advertise their all-in prices, including mandatory fees, up front. The rule would apply to industries under the FTC’s authority, including event tickets, hotel and lodging, apartment rentals, car rentals and more. The rule would also allow the FTC to secure refunds for harmed consumers and seek monetary penalties against companies that do not comply with its provisions.
“Junk fees” include fees that are added on to the price of a product or service after a price is advertised to a consumer or later in the transaction process. A 2022 consumer survey by the Washington State Attorney General’s Office found that in the last four years, 61% of Washington state consumers were charged a fee they didn’t know about until the final stage of ordering a product or service and 39% were charged such a fee they didn’t know about until after a purchase.
Sen. Cantwell’s bipartisan Transparency in Charges for Key Events Ticketing (TICKET) Act currently awaits Senate passage. The bill requires event ticket sellers, like those of concerts or sporting events, to display the total ticket price up front—including all fees—in any advertisement or marketing material. The bill was introduced with Sen. Ted Cruz (R-Texas) and passed the Committee on July 27, 2023.