Pallone Joins Biden at White House for Administration’s Crackdown on Junk Fees

Washington, DC – Congressman Frank Pallone, Jr. (NJ-06) today joined President Biden at the White House for the Administration’s announcement on new actions to crack down on junk fees and lower costs for American families. Junk fees are additional fees that either are disclosed later in the purchasing stage and have little or no value to the consumer. These fees are not usually included in the overall advertised price of a good or service. During the announcement, President Biden asked Congress to follow up on his regulatory actions with legislation. Pallone vowed to push for legislation in the Energy and Commerce Committee where he serves as the Ranking Member.

“Consumers should be able to enjoy live music or plan a vacation without fear of hidden fees that can unexpectedly break the bank. These new actions from the Biden Administration will bring much needed transparency to the live event, car rental, hotel, and banking industries,” Pallone said. “It’s past time to end this deceptive practice companies use to unfairly raise prices on consumers. I applaud the Biden Administration’s actions and look forward to continuing our work to lower prices for Americans.”

The Federal Trade Commission (FTC) is proposing a rule that would ban businesses from charging hidden and misleading fees and require them to show the full price up front. The rule would also require companies disclose up front whether fees are refundable. This rule would eliminate surprise resort fees at check out and unexpected service fees to buy a live event ticket. The rule would also apply to other industries across the economy, including grocery delivery and restaurant fees, apartment rentals, car rentals, and more. Under the proposed rule, companies that fail to comply could face monetary penalties and requirements to provide refunds to consumers.

The White House also announced today that the Consumer Financial Protection Bureau (CFPB) is taking action to require large banks and credit unions to provide basic information to consumers without charging fees—meaning no more fees for basic services like checking bank account balances, obtaining a payoff amount for a loan, or requesting account information needed for applications.

In May, Pallone introduced the BOSS and SWIFT Act with Congressman Bill Pascrell (NJ-09) to bring transparency and regulation to the live events ticket marketplace. The bill would require mandatory all-in pricing to ensure the true ticket price is clearly displayed and does not change during the check-out process. The bill also requires clear disclosures of refund policies and guarantees for consumers to have the choice of a full refund or a replacement ticket in a comparable or upgraded location if a ticket is not delivered.