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?
Especially with hotels where there are 3 different taxes for $10s on the room.
so why only gasoline?
Oil lobby
Why would the oil lobby want tax to be included gasoline? The added transparency only raises the sticker price which reduces sales.
The added transparency only increases sales because people will buy cars knowing that listed price is what they are going to pay for gasoline.
It seems quite the stretch to think people would buy more cars because tax is included in the price of gasoline. Please provide some data that substantiates your theory.
It seems quite the stretch to think people would buy more cars because tax is included in the price of gasoline.
In what shop would you go? In one that charges listed price or one that charges more?
Most people would go to the one with the cheaper posted price but with hidden fees than the one with the more expensive all inclusive price. Market data shows this tactic works, and the fact of the matter is that people are consistently fooled into paying higher prices because of hidden fees.
Why else would most companies consistently hide fees rather than be transparent unless it positively affects their bottom line?
Incoming $10 hidden fee disclosure fee
This is the best summary I could come up with:
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.
The original article contains 278 words, the summary contains 209 words. Saved 25%. I’m a bot and I’m open source!
This is yet another proposal to end hidden fees that does nothing to medical billing, the single largest source of hidden fees.
Looking forward to this, my partners best friend helped pen this rule so it’s been a hot topic in the house for quite a while.
Love booking hotels and getting hot with a destination/resort fee.
