The Federal Trade Commission has proposed a rule to ban any hidden and bogus junk fees, which can mask the total cost of concert tickets, hotel rooms and utility bills.
The Federal Trade Commission on Wednesday proposed a rule to ban any hidden and bogus junk fees, which can mask the total cost of concert tickets, hotel rooms and utility bills.
President Joe Biden has made the removal of these fees a priority of his administration. The Democrat’s effort has led to a legislative push and a spate of initiatives aimed at helping consumers. Administration officials have said these additional costs can inflate prices and waste people’s time.
“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 Chair Lina Kahn said on a call with reporters. “Violators will be subject to civil penalties and be required to pay back Americans that they tricked.”
The FTC proposal is being coupled with the Consumer Financial Protection Bureau announcing that it will block large banks from charging junk fees to provide basic customer services.
Great! There's no reason not to clearly disclose those fees up-front other than deception.
AirBnB is the worst at this. A vacation rental is $200 a night, so you'd assume five nights would be $1000 plus tax. But then add the cleaning fee, the service fee, the booking fee, the hosting surcharge, the surcharge fee, and a half dozen other junk fees, and suddenly it's $375 a night. Plus tax.
Hotels often have other fees tacked on, too. Especially in places like Vegas, where 90% of hotels there are also considered "resorts" and have to add a "resort" tax on top of the normal tax.
Except AirBnB by default shows the total price in searches before taxes, including the fees. These laws exclude taxes from being required to be shown. You don't even have to click any options, it just shows you the total.
They do now, only because they were dragged kicking and screaming into doing so. The fact that they resisted this for so long and then acted like they were somehow "innovating" by simply disclosing what you're actually paying instead of burying people with fine print really left a bad taste with a lot of consumers.
None of that addresses the issue with AirBnB hosts hitting you with undisclosed requirements upon arrival. In addition to paying a cleaning fee, suddenly I have to take out the trash, wash / dry / put away the linens, scrub the bathroom, and do a checklist of other tasks.
I can stay in a four-star Marriott for $200 a night where I'm earning loyalty points, have daily housekeeping, and have on-site hotel staff in case something goes sideways. For the same price, I can stay in a mediocre AirBnB where I'm charged a cleaning fee AND hit with undisclosed requirements after the fact/
While we’re at it, can we get them to make stores include tax in the price listed as well? I’m happy to pay tax because we benefit from it but having tacked on at the end seems like a hidden fee to me.
What a sad state of affairs that we're just now getting to the point where businesses might be required to stop systematically stealing from customers by billing more than the price they quote.
Airlines are required to provide price taxes and fees up front, it had its own legislation around 06(?). The rest of the things they're now charging for like baggage, a non-middle seat, etc. that used to be included are theoretically optional so they don't have to include it.
Airlines just need to be federalized officially, they've had two bankruptcy cycles in the last 15 years, and the industry has no ideas or interest other than adding things to the list above that are currently included that they can then charge you for. Canned air from Druidia is next.
Airlines used to be regulated and broken into many smaller regional airlines. Airlines were required to run certain routes at minimum frequency to ensure everywhere was serviced.
Then came the airline deregulation act and, predictably, things went to shit.
I wish companies like Expedia would make it a feature of their price comparison to show prices that include options the customer plans to use, like baggage or wifi, with the default set to a set of options most customers choose.