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ARTICLE · 26 OCTOBER 2022

Proposed FTC Rulemaking And Recent Enforcement Combat "Junk Fees"

Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
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Frankfurt Kurnit Klein & Selz PC

Frankfurt Kurnit Klein & Selz PC

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The Federal Trade Commission announced that it is exploring a rule to crack down on "junk fees," which the FTC defines as "unnecessary, unavoidable, or surprise charges that inflate costs while adding little to no value."

United StatesMedia, Telecoms, IT, Entertainment

The Federal Trade Commission announced that it is exploring a rule to crack down on "junk fees," which the FTC defines as "unnecessary, unavoidable, or surprise charges that inflate costs while adding little to no value." In an Advance Notice of Proposed Rulemaking, the FTC is seeking comment on the alleged harms caused by these junk fees, the tactics companies use to impose them, and whether there is a need for a rulemaking to prevent such practices.

According to the FTC, companies impose junk fees in a wide variety of contexts, including by cramming in hidden fees to which consumers did not consent, misrepresenting optional services or upgrades as mandatory, and by charging for products or services with little to no value. The FTC therefore seeks comment on harms stemming from the following:

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This post first appeared in Frankfurt Kurnit's Focus on the Data blog (www.focusonthedata.com). It provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

Originally published by the New York Legal Ethics Reporter

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

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