Junk fees are notoriously the worst part about subscriptions and online transactions…
Thankfully, the feds are ready to do something about it.
But will their new solutions be able to stick?
The War Against Junk Fees
After years of consumers dealing with augmented pricing on subscriptions and services…
The FTC is finally eyeing the problem: Junk fees.
If you’ve spent any money online, you probably have already encountered Junk fees. These pesky hidden fees are added to any service you can think of…
They’re responsible for more expensive airfare, concert tickets, and phone services.
And as you can imagine, junk fees are incredibly unpopular.
A WHOPPING 77% OF VOTERS THINK THESE FEES SHOULD BE COMPLETELY BANNED.
For Americans, economic concerns are a top priority. With rampant inflation everywhere and even increased shrinkflation…
Most consumers don’t want to shell out extra dollars on fees they don’t even know about.
So what are the solutions?
The Federal Trade Commission introduced new proposals limiting unwanted fees and automatic recurring payments. The proposed rules would ban companies from the following:
- Billing customers without their consent.
- Failing to disclose a service’s cancellation policy.
- Making cancellation difficult by requiring it to be in person or by speaking to a customer service representative.
It’s in the best interest of giant corporations to add on the junk fees and make it harder for consumers to cancel…
Because it means fattening their bottom line…
BUT FOR CONSUMERS, IT MEANS MORE OF THEIR MONEY IS GONE WITHOUT THEM REALIZING IT.
While these proposals are great for the average shopper…
They don’t come without objection…
Challenges To New Proposals
However, not everyone is happy with the elimination of junk fees…
Namely, the corporations that would have to eliminate their hidden fees.
The proposals have a long way to go before they become law…
But this year, companies have already demonstrated pushback to similar initiatives.
Airlines sued the Biden administration over a rule…
That would require major airlines to disclose to customers all fees when they purchase airline tickets.
And it’s not just the airlines working to save their junk fees…
Credit card companies argued that a rule that would limit overdraft fees to $8 was unconstitutional.
But arguably the biggest barrier to these proposals being curbed would be the outcomes of the upcoming presidential election…
Depending on the future president, these initiatives could be scrapped altogether.
While junk fees are still a nightmare for anyone who deals with them…
It’s still unclear if they’ll be gone for good or keep stubbornly sticking around.
Be Great,
GCTV Staff
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