cover image: What are junk fees?  Summary Who imposes junk fees?


What are junk fees? Summary Who imposes junk fees?

23 May 2024

EXPLAINER What are junk fees? May 2024 Summary The term “junk fees” has invaded the lexicon of the federal government as the executive branch attempts to place controls on a wide range of private businesses. [...] The Federal Trade Commission and the White House attach the term to any and all purchase fees, most frequently charged by businesses in the service industry. [...] Overdraft fees Hotel resort fees Why is the government’s push to eliminate junk fees a problem? The unintended consequences EXAMPLE: A woman purchases an airline ticket for a quick weekend getaway of overburdensome regulation with friends. [...] While the idea of banning these fees may sound appealing, more often than not the overburdensome regulation results in more harm to the consumer. [...] Banning the fees does not make them disappear; instead, they are wrapped into the cost of the broader service, resulting in less price transparency and higher average prices.
Published in
United States of America