The proposed rule would observe to many industries around the economic system.
October 11, 2023, 5:04 AM
The Federal Trade Commission is proposing a new rule that seeks to do away with junk charges — the ones hidden prices that may rapidly push up costs consumers pay at checkout.
The proposed rule would observe to many industries around the economic system, together with match tickets, lodges and condo leases. If the rule is going into impact, firms that proceed to rate those charges may well be fined and compelled to pay again consumers.
Stock picture of U.S. bucks.
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The FTC says the far-reaching rule may just save consumers “tens of billions of dollars in fees.”
“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 Khan mentioned on a choice with journalists.
The FTC estimates the proposed rule will save consumers greater than 50 million hours in step with 12 months of wasted time spent in search of the overall worth in reside ticketing and momentary accommodation on my own. This time financial savings is an identical to greater than $10 billion over the following decade.
There will probably be a 60-day public remark length as soon as the rule is revealed within the Federal Register.
Senior management officers, then again, didn’t have steerage on when the rule may well be finalized and pass into impact.
Signage out of doors the Federal Trade Commission (FTC) headquarters in Washington, DC, on Feb. 17, 2023.
Ting Shen/Bloomberg by means of Getty Images
The FTC has the authority to transfer ahead with this rule with out further approval from Congress, officers mentioned.
As President Biden continues his push of “Bidenomics” and makes a speciality of the on a regular basis prices that hit American pocketbooks, that is every other likelihood for the president to check out to enchantment to electorate about his financial message. He’s many times highlighted his management’s efforts to take on those junk charges throughout a host of sectors — from air trip to well being care.
Separately, the Consumer Financial Protection Bureau is issuing steerage to massive banks and credit unions, prohibiting them from charging shoppers charges for elementary information about their accounts, like checking their checking account stability.
The CFPB additionally launched a new record appearing its crackdown on bounced test charges has stored consumers just about $2 billion since 2021.
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