Junk Fee Prevention Act

Summary#

The Junk Fee Prevention Act would require businesses in several areas to show the full price of goods and services up front and to stop using hidden or excessive mandatory fees. The bill applies to short-term lodging providers, ticket sellers and platforms, communications service providers, and air carriers (and lets agencies add others). Key provisions: clear, conspicuous total price in advertisements and at first price disclosure; mandatory fees may not change during the purchase; mandatory fees must not be excessive or deceptive; ticket sellers must disclose the total number of tickets offered at least 72 hours before first sale; refunds must return the total paid including mandatory fees; sellers who do not yet have a ticket must tell buyers and must refund if they cannot deliver the ticket in time. For communications services (broadband, voice, mobile, and certain video services) the bill would ban excessive early termination fees, require prorated credits after service ends, require an aggregate price line on bills, require notice about when introductory prices end, and direct the FCC to start rulemaking about mandatory fees. For airlines the Department of Transportation would require quarterly reports from carriers on revenue from ancillary fees, broken down by service and class, and publish a compiled report. Enforcement: the Federal Trade Commission would enforce the general fee provisions (treating violations as unfair or deceptive acts), the FCC would enforce the communications provisions under the Communications Act, and the DOT would collect and publish carrier fee reports. States may bring civil actions as parens patriae with notice to the FTC.

What it means for you#

  • If you buy tickets, book short-term lodging, use phone or internet service, or fly on a carrier covered by this bill, you would see a single total price shown early in ads and at the point of sale that includes mandatory fees and government charges. Prices shown should match what you are later charged.
  • Ticket buyers would have disclosure about how many tickets are being sold and stronger refund protections, including refunds that include mandatory fees.
  • Communications customers should get a single clear line showing the aggregate price on their bill and advance notice when introductory rates end; providers could not charge unreasonable early termination fees and must prorate final bills.
  • Air travelers would benefit from public DOT reports showing how much carriers earn from ancillary fees like baggage and seat selection.
  • Businesses in the covered areas would need to change advertising, billing, ticketing, refund practices, and reporting to comply with the new rules and could be subject to enforcement by federal agencies or state attorneys general.

Expenses#

No publicly available information.

Proponents' View#

The bill states its purpose is to "limit and eliminate excessive, hidden, and unnecessary fees imposed on consumers." Supporters, as reflected in the bill text, seek clearer up-front pricing, limits on excessive mandatory fees, stronger refund rules for tickets, and more public reporting on airline ancillary fees.

Opponents' View#

No publicly available information.