What’s going to happen to the FTC’s ‘junk fees’ rule once Trump takes office?

President Joe Biden and his administration have spent years tackling what they call “junk fees,” which are mandatory fees that are not transparently disclosed to consumers.

The Federal Trade Commission issued a “junk fees” rule under Biden on Tuesday, expected to go into play in April just as the Trump administration is ramping up its plans for the next four years. This time around the rule was meant to stop companies from hiding total prices and burying other fees when it comes to live-event ticketing, hotel bookings, and other short-term rentals.

While it’s been top of mind for the outgoing administration (considering studies show these fees amount to more than $650 per household per year on average), it’s not clear how President-elect Donald Trump and his team plan to address the regulations. A spokesperson for the incoming administration didn’t respond to a request for comment. Lina Khan, the outgoing FTC chair, used the rule’s final press release to appeal to her successors to keep taking action.

“I urge enforcers to continue cracking down on these unlawful fees and encourage state and federal policymakers to build on this success with legislation that bans unfair and deceptive junk fees across the economy,” Khan wrote.

In the past, there’s been bipartisan support for banning these types of fees in certain industries. Texas Senator Ted Cruz and Washington Senator Maria Cantwell cosponsored the TICKET Act, which requires event ticket sellers to display the total price up front in any advertisement or marketing that lists a ticket price.

“It is not clear to me whether the push for price transparency regarding the disclosure of mandatory fees will end at the close of the Biden-Harris administration or continue into the next administration,” says Columbia University professor Vicki Morwitz. “In fact, this new FTC regulation will only come into effect in April, when it is already Trump’s term, so it is possible he may even try to take credit for it.”

A potentially conflicting sign is that FTC Commissioner Andrew Ferguson, Trump’s pick to replace Khan as head of the agency, put out a dissenting statement in response to the new rule on junk fees (though he said it had nothing to do with the actual merits of the rule).

“This lame-duck Commission should give its regulatory pen a much-needed rest, focus on routine law-enforcement, and prepare for an orderly transition,” Ferguson wrote.

“It is particularly inappropriate for the Biden-Harris FTC to adopt a major new rule that it will never enforce. . . . [Trump’s] incoming Administration should have the opportunity to decide whether to adopt rules that it, not the Biden-Harris FTC, will be called upon to enforce.”

https://www.fastcompany.com/91248907/whats-going-to-happen-to-the-ftcs-junk-fees-rule-with-trump-in-office?partner=rss&utm_source=rss&utm_medium=feed&utm_campaign=rss+fastcompany&utm_content=rss

Erstellt 6mo | 19.12.2024, 12:20:06


Melden Sie sich an, um einen Kommentar hinzuzufügen

Andere Beiträge in dieser Gruppe

Here’s what Trump’s ‘big, beautiful bill’ means for AI

The Republican Party’s 800-page One Big Beautiful Bill Act is now being debated i

01.07.2025, 00:10:04 | Fast company - tech
Colombian gangs are using social media to recruit children, the U.N. warns

Colombian gangs are using social media to reach and recruit children, the United Nations has warned.

Gangs and rebel groups are enticing children to enlist by posting videos on platforms

30.06.2025, 21:50:02 | Fast company - tech
Senate debates revised state AI regulation ban

Two key U.S. Republican senators agreed to a revised federal moratorium on state regulation of

30.06.2025, 19:30:04 | Fast company - tech
Cato Networks secures $359 million in latest funding round

Israel’s Cato Networks said on Monday it had raised $359 million in a funding round, valuing the cybersecurity firm at more than $4.8 billion, as investors bet on growing demand for

30.06.2025, 19:30:03 | Fast company - tech
Is this Hollywood’s moment of AI reckoning?

For some in Hollywood, as Silicon Valley’s AI models have become impos

30.06.2025, 17:10:08 | Fast company - tech
Startups are ditching LinkedIn for TikTok to announce funding rounds

The classic funding announcement post is getting the Gen Z treatment.

More startups, especially those led by young founders, are moving away from LinkedIn posts or X threads and turning

30.06.2025, 17:10:07 | Fast company - tech
The sneaky way to to deal with public Wi-Fi restrictions

On a recent flight home to Cincinnati, I found myself in a Wi-Fi pickle.

Delta was offering free in-flight Wi-Fi for all SkyMiles members, but only after logging in through a web page. T

30.06.2025, 12:30:05 | Fast company - tech