The Federal Trade Commission just announced that it is extending the public comment period for its proposed rule on "junk fees" until February 8, 2023.
In October, the FTC announced that it is considering whether to promulgate a rule on "junk fees," which the FTC defines as "unnecessary, unavoidable, or surprise charges that inflate costs while adding little to no value." As my colleague Kate Patton blogged about, in an Advance Notice of Proposed Rulemaking, the FTC is seeking comment on the alleged harms caused by these junk fees, the tactics companies use to impose them, and whether there is a need for a rulemaking to prevent such practices.
So, if you're thinking about submitting comments, you've got some extra time to do it. A rule on so-called "junk fees" has the potential to have significant impact on company's pricing practices -- and on the penalties companies are subject to if they charge fees in a manner that the FTC believes is improper. This is no small issue for the Biden administration. Even President Biden has weighed in, saying that, he wants to eliminate "unfair hidden fees" that are taking "real money out of the pockets of American families."
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