On Oct. 11, 2023, the FTC released a proposed rule that would, if finalized in its present form, prohibit “misleading” fees and require more prominent disclosures for so-called “junk fees.” The FTC’s proposed rule, called the “Rule on Unfair and Deceptive Fees,” would broadly prohibit businesses subject to FTC jurisdiction from mispresenting the nature and purpose of any fee. It would also require them to clearly and conspicuously disclose the “total price” for their goods or services, with the “total price” defined to include all fees and charges, other than shipping charges and government-imposed charges, that a consumer must pay for a good or service or for any additional good or service offered to the consumer as part of the same transaction.
FTC Proposes Rule Targeting ‘Junk Fees’
