Junk Fee Prevention Act
Summary
The Junk Fee Prevention Act aims to limit and eliminate excessive, hidden, and unnecessary fees imposed on consumers across various sectors, including short-term lodging, ticketing services, communications, and air travel. It mandates transparent pricing, prohibits excessive fees, and requires clear disclosure of refund policies. The Act empowers the Federal Trade Commission (FTC) and the Federal Communications Commission (FCC) to enforce these provisions and promulgate further rules.
Expected Effects
The Act will likely lead to greater price transparency and reduced costs for consumers by preventing companies from levying hidden or excessive fees. It also establishes reporting requirements for air carriers regarding ancillary fees. This could lead to increased competition and fairer pricing practices across the covered industries.
Potential Benefits
- Increased price transparency for consumers.
- Reduced incidence of hidden and excessive fees.
- Empowerment of consumers through clear refund policies.
- Enhanced competition among businesses due to fairer pricing.
- Greater regulatory oversight by the FTC and FCC.
Potential Disadvantages
- Potential for businesses to increase base prices to compensate for lost fee revenue.
- Possible compliance costs for businesses, particularly smaller entities.
- Risk of regulatory overreach or unintended consequences from FTC/FCC rule-making.
- Potential for loopholes or creative fee structures to circumvent the law.
- Possible litigation and legal challenges regarding the definition of 'excessive' fees.
Constitutional Alignment
The Junk Fee Prevention Act aligns with the Commerce Clause (Article I, Section 8, Clause 3) of the U.S. Constitution, which grants Congress the power to regulate interstate commerce. By addressing fees in various sectors that operate across state lines, the Act falls under this constitutional authority. The Act also delegates rulemaking authority to the FTC and FCC, which is a common practice upheld by the Necessary and Proper Clause (Article I, Section 8, Clause 18).
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).