FTC Proposes Rule Targeting 'Junk Fees'

Go-To Guide:

• The Federal Trade Commission (FTC)'s proposed rule will, if finalized in its present form, prohibit "misleading" fees and require more prominent disclosures for so-called "junk fees."
• The proposed rule would require businesses subject to FTC jurisdiction to clearly and conspicuously disclose the "total price" for their goods or services, and also broadly prohibit businesses from misrepresenting the nature and purpose of any fee, including refundability and the identity of the good or service for which the fee is charged.
• While unfair or deceptive fee practices are already unlawful under Section 5 of the FTC Act, the proposed rule would allow the FTC to seek civil penalties against violators and more readily obtain monetary redress.