PIRG Education Fund remarks supporting new FTC rules on junk fees

The Federal Trade Commission on Oct. 20 voted to explore new rules on junk fees, which cost consumers and businesses billions of dollars a year.

Before it adopts new rules, the FTC said it wants to hear from the public on the effects of junk fees and the “unfair or deceptive” ways such fees are imposed.

Junk fees include ones added without the customer’s knowledge or late in the transaction, or represented as a mandatory fee when they’re not, or buried in a lengthy document or fine print. Examples are fees added to hotel rooms or event tickets, fees stuffed on cable or cellphone bills, or concocted fees, as we often see with banks.

After the notice of the intention to produce new rules has been published in the Federal Register, consumers can submit comments electronically. Consumers also may submit comments in writing by following the instructions in the “Supplementary Information” section of the Federal Register notice.

Here’s a link to remarks made by Consumer Watchdog Teresa Murray during the Oct. 20 hearing.