President Joe Biden is set to announce new measures aimed at tackling hidden fees during an event at the White House. The initiatives will include $2 billion in savings and $140 million in consumer refunds resulting from previous efforts by the Consumer Financial Protection Bureau to address these fees. The Federal Trade Commission will introduce a proposed rule banning businesses from charging undisclosed or misleading fees and requiring full price disclosure upfront. This move aims to prevent event ticketing companies, hotels, car rental agencies, and others from imposing surprise service charges.
According to the administration’s fact sheet, the focus on addressing hidden fees is born out of President Biden’s desire to prioritize the financial well-being of American families. National Economic Council Director Lael Brainard emphasized that these fees may not significantly impact wealthier Americans but can have a significant impact on hardworking families trying to manage their bills. The proposed rule would not impose limits on what sellers can charge but would require them to disclose final costs upfront.
The goal of this initiative is to encourage businesses to compete based on price transparency rather than their ability to hide costs from consumers. The administration is prepared to take enforcement action against companies that charge excessive fees and urges firms to act now to ensure compliance. Furthermore, the Consumer Financial Protection Bureau will also take steps to prohibit large banks and credit unions from charging consumers for basic services and require banking institutions to enable secure transaction data transfer to enhance competition in the financial industry.
