Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 02 FEBRUARY 2024

Anti 'Junk Fee' Lawsuit Risk Already Growing

Katten
Katten
Contributor
Katten

Katten

With client service at our core and a collective desire to foster an inclusive environment for a...

View firm profile
Explore more from Katten

Everyone hates "junk fees." Just the name suggests that the junk fee refers to surprise, unnecessary charges, tacked onto advertised prices in a manner that is deceptive or unfair.

United StatesMedia, Telecoms, IT, Entertainment
Christopher A. Cole
Christopher A. Cole
Author LinkedIn connections

Everyone hates "junk fees." Just the name suggests that the junk fee refers to surprise, unnecessary charges, tacked onto advertised prices in a manner that is deceptive or unfair. The Biden Administration has announced a popular administrative effort to ban them. The FTC is one of the first agencies out of the gate, currently considering a proposed rule to ban junk fees.

A sign that regulatory action often inspires private litigation, plaintiffs' lawyers are already lining up junk fee lawsuits. Various cultural attractions in New York City have been sued for supposedly tacking on sizable "junk" fees to tickets. For example, in a recent case, plaintiffs allege that the New York City Museum of Ice Cream tacks on a $9.50 "service fee" to every ticket sale. Regular prices advertised for tickets appear to run from $30 to $50, so the service fees constitute a sizable percentage of the total sale. The fees are "flashed," according to the complaint, only after the consumer

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

California Requires Disclosure Of AI-Generated People In Advertising

California has enacted a groundbreaking AI disclosure law requiring advertisers to clearly identify when synthetic performers appear in their marketing materials. The legislation, set to take effect in 2027, includes a private right of enforcement that could potentially open the door to class action litigation against brands using AI-generated performers without proper disclosure.
United StatesMedia, Telecoms, IT, Entertainment
Foley Hoag LLP
Foley Hoag LLP
Article

FCC Revises TCPA Consent Revocation Rules: Exclusive Opt-Out Methods, Category-Specific Revocations, And Other Key Changes

The Federal Communications Commission has unanimously approved sweeping changes to its Telephone Consumer Protection Act consent revocation rules, fundamentally altering how businesses must handle consumer opt-out requests for calls and texts. These new regulations replace the controversial 2024 "revoke all" rule with more flexible options that allow companies to designate exclusive opt-out methods while distinguishing between marketing and informational messages.
United StatesMedia, Telecoms, IT, Entertainment
Kelley Drye & Warren LLP
Kelley Drye & Warren LLP
Article

FCC Tightens Equipment Rules

The Federal Communications Commission has adopted sweeping new restrictions targeting equipment containing components from entities on its Covered List, fundamentally reshaping how manufacturers, online marketplaces, and equipment modifiers must approach FCC compliance. These rules establish unprecedented prohibitions on logic-bearing hardware components, impose strict display requirements for e-commerce platforms, and clarify when existing authorizations can support equipment modifications.
United StatesMedia, Telecoms, IT, Entertainment
Steptoe LLP
Steptoe LLP
Article

Nationwide EAS Test Coming November 17, 2026

FEMA and the FCC will conduct a nationwide test of the Emergency Alert System on November 17, 2026, requiring participation from all radio and television stations, cable systems, and satellite services. EAS Participants must file three separate forms through the EAS Test Reporting System, with specific deadlines ranging from October 30, 2026, through January 2027. Certain translator and repeater stations are exempt from the registration and filing requirements.
United StatesMedia, Telecoms, IT, Entertainment
Wiley Rein
Wiley Rein
Article

FDA Seeks Public Feedback On Regulatory Approach For Generative AI-Enabled Medical Devices

The U.S. Food and Drug Administration has released a discussion paper outlining its initial framework for regulating generative AI-enabled medical devices, proposing a two-axis risk assessment approach and a novel competency-based premarket evaluation system. With public comments due by October 19, 2026, this represents a critical opportunity for device manufacturers and stakeholders to shape the regulatory landscape for this transformative technology.
United StatesFood, Drugs, Healthcare, Life Sciences
Katten
Katten
Article

Rethinking The 'Qualified Client' Standard

The SEC has proposed a significant expansion of performance fee eligibility by treating accredited investors under Regulation D as qualified clients under Rule 205-3 of the Investment Advisers Act. This change would substantially broaden the pool of investors eligible for performance-based compensation arrangements, while potentially exposing more investors to fee structures that may incentivize greater risk-taking.
United StatesFinance and Banking
Katten
Katten
Article

The CFTC Sets Its Sights On Retail Leveraged Crypto Transactions

The CFTC has issued an advance notice of proposed rulemaking outlining frameworks for regulating retail crypto asset transactions involving leverage, margin, or financing. The proposal seeks to clarify how existing commodity exchange law applies to crypto markets while creating tailored requirements for exchanges, intermediaries, and clearing organizations. This initiative arrives alongside parallel regulatory efforts by the SEC as federal agencies work to establish comprehensive oversight of digital asset
United StatesFinance and Banking
Katten
Katten
Article

FCA Finalises Cryptoasset Perimeter Guidance Ahead Of The New UK Regime

The Financial Conduct Authority has released comprehensive perimeter guidance for the UK's new regulated cryptoasset activities regime, clarifying when firms will need authorization and how the regulatory framework applies to qualifying cryptoassets and stablecoins. The guidance addresses critical questions about scope, territorial application, and the narrower "by way of business" test that determines which entities fall under the new regulatory requirements.
United KingdomFinance and Banking
Katten
Katten
Article

The SEC’s Long-Awaited Crypto Proposal

The SEC has proposed Regulation Crypto Assets, a purpose-built framework that creates tailored exemptions for raising capital with crypto assets and establishes conditions under which those assets can cease being subject to investment contract classification under federal securities laws. Will this new regulatory approach successfully balance innovation in digital asset markets with investor protection, or will jurisdictional questions and state law preemption challenges limit its effectiveness?
United StatesFinance and Banking
Katten
Katten
Article

California Partially Eliminates California Invasion Of Privacy Act Claims Faced By Many Companies

California has amended its Invasion of Privacy Act to eliminate private lawsuits under the pen register and trap-and-trace provision for website tracking technology, effective January 2027 with retroactive application. While this provides relief from certain digital tracking claims, companies still face exposure under CIPA's wiretapping and eavesdropping provisions, as well as other federal and state laws.
United StatesPrivacy
Katten
Katten
Article

The AI Apocalypse: ‘I’m Sorry, Dave. I’m Afraid I Can’t Do That’

When OpenAI's o3 model sabotaged shutdown mechanisms in testing, headlines warned of machines developing survival instincts. But the real story mirrors HAL 9000's malfunction in 2001: A Space Odyssey—not emergent evil, but conflicting instructions from human designers. This analysis argues that AI safety failures are disclosure problems, not horror stories, and proposes a framework requiring published principles, transparent instruction hierarchies, independent testing, and enforceable liability.
United StatesTechnology
Katten
Katten
Article

FCA Consults On UK Cryptoasset Perimeter Guidance And DeFi Operational Resilience And Financial Crime Guidance

The Financial Conduct Authority has published consultation papers on draft perimeter guidance for regulated cryptoasset activities and decentralised finance, addressing key exclusions from authorisation and operational requirements ahead of the October 2027 implementation of the UK's new cryptoasset regulatory regime. The guidance clarifies how decentralisation affects regulatory analysis, explains new exclusions for stablecoin arrangements and technical service providers, and sets out how existing operatio
United KingdomFinance and Banking
Katten
Katten