Biden Administration Proposes Ban on Hidden Junk Fees

TIME

President Joe Biden touted that the proposed rule to eliminate "junk fees" toward consumers will give breathing room for American families.

Transcript

00:00 One of the key things I've asked the Council to tackle

00:02 are the unfair fees known as "junk fees" --

00:06 those hidden charges that companies sneak into your bill

00:10 to make you pay more because they can --

00:13 just simply because they can.

00:15 Charges that are taking real money

00:16 out of the pockets of American families.

00:18 These junk fees can add up hundreds of dollars,

00:21 weighing down family budgets,

00:23 making it harder to pay family bills.

00:26 These junk fees may not matter to the wealthy,

00:29 but they sure matter to working folks in homes

00:32 like the one I grew up in.

00:33 Today, I'm proud to announce that my administration

00:35 is taking our most comprehensive action ever

00:38 to eliminate junk fees and -- and --

00:40 and fees in industries and sectors across the board,

00:44 across the entire economy.

00:47 You know, if these rules are finalized,

00:49 they won't just be voluntarily; they'll be made mandatory.

00:53 Mandatory. We do more than embarrass the company;

00:55 we make them mandatory.

00:57 (Applause.)

00:58 Here's how.

00:59 The Federal Trade Commission is proposing a new rule

01:02 that would ban hidden fees across the economy

01:05 and require companies to show consumers

01:08 the all-in pricing up front -- up front.

01:12 That includes what these fees are for,

01:17 how much they amount to in full,

01:19 and whether they are refundable.

01:21 Research shows that without -- without realizing it,

01:26 folks can end up paying as much as 20 percent more

01:29 because of hidden junk fees than they would have paid

01:32 if they could see the full price up front

01:34 and compare it with other options.

01:36 It's wrong. It's wrong.

01:38 It's just taking advantage of people.

01:40 And it makes it harder for honest businesses

01:42 who are trying to do the right thing

01:44 to compete with dishonest companies

01:46 who trick customers into thinking their price are lower

01:49 when they, in fact, are not.

01:50 Today's actions are part of my broader economic vision.

01:54 To move from trickle-down economics

01:56 to what everyone in the Wall Street Journal

01:58 and the Financial Times began to call "binomics."

02:01 I don't think they meant it as a compliment at first.

02:03 (Applause.)

02:05 It's about growing the economy from the middle out

02:07 and the bottom up, not the top down.

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