United States of America: Issued FTC notice of proposed rulemaking on Trade Regulation Rule on Unfair or Deceptive Fees

On 11 October 2023, the Federal Trade Commission (FTC) issued a notice of proposed rulemaking on Trade Regulation Rule on Unfair or Deceptive Fees. The FTC noted that hidden and deceptive fees, referred to as “junk fees”, can adversely affect consumers and create unfair competition. The proposed rule prohibits businesses from imposing undisclosed fees, ensuring transparent pricing for consumers, and fostering competition based on the actual cost of goods and services. In addition, to facilitate comparison shopping, under the rule, businesses would be required to disclose all mandatory fees when quoting prices. The proposed rule also empowers the FTC to secure refunds for affected consumers and impose monetary penalties on non-compliant companies.