The Federal Trade Commission proposes a ban on junk fees and says hidden charges push up prices
The Federal Trade Commission proposes a ban on junk fees and says hidden charges push up prices
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.
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Can we do airlines, too?
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.
State control of airlines is an interesting proposal... I like it a lot the more I think about it.
There would be drawbacks for sure, but no one can seriously argue airlines aren't incredibly worse than they were before deregulation.
Great article here: https://www.theatlantic.com/ideas/archive/2023/09/airlines-banks-mileage-programs/675374/
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.
Spirit charges you for your seat after you arrive. So no they aren't already doing this
No, they charge you for picking a seat. They don't stop you from boarding the plane. You can even pay less for a flight by buying your Spirit ticket at the airport to avoid a $23 passenger usage fee.
So you buy the ticket but can't get on the plane unless you pay an additional seat fee at check in?
No, that person is incorrect. They charge you to pick your seat. They don't stop you from getting on the plane.
Ok, so then that's one of the services that used to be free but they now charge for; it's standard asshole corporate squeeze but not hidden.
I'm just waiting to have to swipe my card to unlock my tray table or page the FA.
If you want to apply for our credit card we can waive the FA fee...but actually no need to apply, we took the liberty of using your fingerprint from the armrest and have great news, you're pre-approved! Simply nod your head to accept the APR of 99.99% and we'll get the FA to your seat straight away.