Junk fees: How to avoid them or fight them

Many consumers see junk fees in various forms. Some people use junk fees as a catch-all phrase for any charge they don’t like. The topic has certainly been getting attention in recent years, with the White House talking about a new crackdown, buzz about the Junk Fee Prevention Act introduced in Congress and new rules announced Dec. 17 by the Federal Trade Commission (FTC.) They’re expected to take effect in spring 2025.

There are three simple definitions of a junk fee:

1. Mandatory charges that aren’t disclosed up front. It could be a “resort fee” slid in just before you book a hotel room, a required company charge added to monthly cell phone bill, or a service fee you can’t avoid when purchasing an event ticket. Many companies are guilty of “drip-pricing” – prices that don’t include everything you must pay.
2. Optional charges that are portrayed as mandatory or are given official-sounding names to deceive consumers or discourage them from questioning the fees.
3. Mandatory charges buried in an unreasonably long terms and conditions document. You might expect a 10-page document for a car loan, but not to book an airline ticket.

Here’s some simple advice to protect yourself from surprise junk fees:

• Read everything before you pay, sign, initial or agree.
• Don’t sign or agree to anything that you didn’t actually read.
• If there’s something you don’t understand, ask what the fee is for. Getting a clarification in writing (or via email or text) is better. 
• Don’t be afraid to walk away from the transaction if you don’t like the extra fees.
• Pay by credit card. Never by debit card. Undisclosed fees are easier to dispute with a credit card. And debit cards expose your whole checking account to all kinds of additional problems.
• Note the names of anyone you talk with. Put a note in your calendar or send yourself an email of the day and time of day when you talked with the person. It helps you fight a fee if you can document that you talked with this person on this day and were told this.
• Keep copies of all receipts, agreements, emails, texts. 
• If you’re hit with an undisclosed or misleading fee, complain to the company and file a complaint with your state attorney general’s office of consumer protection or the Federal Trade Commission.

Other consumer-friendly fee transparency rules announced in 2024 include:

• Internet providers must provide “nutrition labels” that itemize pricing as of Oct. 10, 2024, the FCC said. 
• Cable/ satellite providers will be required to disclose “all-in pricing” in early 2025, the FCC said.
• Airlines will be required in April 2025 to disclose any baggage or cancellation / change fees up front, along with the ticket fare, the DOT said. 
• Airlines can’t charge extra for a child to sit next to an adult travel companion. This was part of a bill passed by Congress in May 2024; proposed rules could take effect in early 2025.