FTC Launches Rulemaking Process To Address "Junk Fees"

On October 20, 2022, the Federal Trade Commission (the "FTC") announced the initiation of a new rulemaking process to address hidden fees, charges, and add-on fees assessed for goods and services, which the FTC and the White House have collectively coined as "junk fees." Shortly thereafter on November 8, 2022, the FTC commenced the first step in the rulemaking process, publishing an Advanced Notice of Proposed Rule Making ("ANPR") in the Federal Register, which is currently under public comment.

Defining "Junk Fees"

The ANPR defines "junk fees" as "unfair or deceptive fees that are charged for goods or services that have little or no added value to the consumer, including goods or services that consumers would reasonably assume to be included within the overall advertised price." According to the ANPR, junk fees also encompass "hidden fees, which are fees for goods or services that are deceptive or unfair, including because they are disclosed only at a later