FTC lays out new rule that could end hidden fees | The agency is proposing a new rule that could require businesses, from hotels to ticket sellers, to provide clear disclosures on costs and whether...
FTC is working to make businesses present upfront costs.
FTC lays out new rule that could end hidden fees | The agency is proposing a new rule that could require businesses, from hotels to ticket sellers, to provide clear disclosures on costs and whether...::The US Federal Trade Commission is proposing a new rule known as the Trade Regulation Rule on Unfair or Deceptive Fees that it hopes will stop businesses from charging consumers hidden fees.
Hey FTC: let’s have the govt set the example here and include sales tax in this rule. It is also a bullshit hidden fee, and there’s no reason we shouldn’t include it in the sticker price. You already require it to be included for gasoline, so why only gasoline?
Hopefully this will include groceries. I hate when I go to buy something and it says $9.99 and I get up to the register and they hit me with this stupid, obnoxious hidden fee!
I only have a $10 bill, it says it costs less then $10. Why is it not false advertising to have it say $9.99 when it costs $12.37 at the register?
at least in the US pricing is somewhat consistent. Sticker price + local tax, which isn’t going to change shop to shop, just state to state or within city limits. If you go to China or the Middle East the “sticker price” is bogus and you’re expected to haggle with the merchant in many places.
That would be different. That would be an advertised price with their membership card that has built in coupons. With sales tax on top. Those aren't technically hidden fees, and wouldn't be effected by this.
Meh, we computers that can do the math, and the labels are all printed. There is no reason why the labels can't be sales tax included these days. I understand it is harder when running commercials or billboards, but in store there is no excuse.
The US Federal Trade Commission (FTC) is proposing a new rule that it hopes will put an end to hidden junk fees that some businesses often add as a surprise when consumers are checking out.
The agency is currently seeking public comment on the rule, known as the Trade Regulation Rule on Unfair or Deceptive Fees, after having already collected 12,000 comments last year from individuals, businesses, law enforcement groups, and others on how deceptive fees affect them.
FTC Chair Lina Khan said in a statement that “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 adds that tackling junk fees through its nearly 100-year-old legal mandate that covers “unfair and deceptive acts or practices” is not enough.
The companies agreed to present customers with upfront prices, and now this new proposed FTC rule could force other businesses in different industries, from airlines to hotels, to follow suit.
If successful, the new rule could put an end to bait-and-switch tactics, which consumers have told the FTC that they’re constantly experiencing.
There is a 60-day window to provide comment on the new rule once it’s published in the Federal Register.
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