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The Federal Trade Commission just announced that it is extending the public
comment period for its proposed rule on “junk fees” until
February 8, 2023.
In October, the FTC announced that it is considering whether
to promulgate a rule on “junk fees,” which the FTC
defines as “unnecessary, unavoidable, or surprise charges that
inflate costs while adding little to no value.” As my
colleague Kate Patton blogged about, 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.
So, if you’re thinking about submitting comments, you’ve
got some extra time to do it. A rule on so-called “junk
fees” has the potential to have significant impact on
company’s pricing practices — and on the penalties companies
are subject to if they charge fees in a manner that the FTC
believes is improper. This is no small issue for the Biden
administration. Even President Biden has weighed in, saying that, he wants to eliminate
“unfair hidden fees” that are taking “real money out
of the pockets of American families.”
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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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