Dear Neighbor,You may have heard a lot about “junk fees” recently, but I wanted to talk about what that term means and our ongoing efforts to stop them.Junk fees are charges that sellers add on to inflate the total price consumers pay at the time of purchase. There are two major types of junk fees: hidden fees and bogus fees.Hidden fees are just what they sound like. Dishonest businesses routinely engage in bait-and-switch pricing tactics that hide mandatory fees and deceive consumers about the price. These fees—imposed later, but before the purchase is made—significantly increase the total that consumers pay. Bogus fees are applied with no clear purpose. Businesses often intentionally misrepresent or fail to disclose the purpose behind certain fees, increasing the price at checkout.According to estimates from the Federal Trade Commission (FTC), junk fees currently cost American consumers tens of billions of dollars every year. From concert tickets to online purchases, junk fees have jacked up prices just to line corporate coffers. However, on October 11, the Biden Administration announced a new proposed rule to prohibit junk fees.This rule would bar businesses from luring in customers with artificially low prices and then tacking on additional fees to turn bigger profits, and it would equip the FTC with the means to enforce that ban. Businesses that engage in this deceptive practice would face fines, and the FTC would be authorized to secure refunds for customers harmed. This would level the playing field for honest businesses and ensure customers know what they’re paying for—and how much they’re paying—from the start.Experts estimate that this rule change will save consumers more than 50 million hours per year in time spent searching for the total price for things like live ticketing and short-term lodging. This time savings alone is likely to amount to more than $10 billion over the next decade.But the fight against junk fees isn’t just limited to the FTC. Under the direction of the Biden Administration, agencies across the federal government have rolled out plans to combat junk fees:The Federal Communications Commission is instituting Broadband Consumer Labels, a new tool to increase price transparency and reduce cost confusion, help consumers compare services, and provide “all-in-pricing” so that every American can understand prices up front. The Department of Housing and Urban Development has cracked down on junk fees facing renters to lower the costs millions of Americans pay every month. From repeated rental application fees to surprise “convenience fees,” the Biden Administration is making it easier and more affordable for renters to find and stay in their homes.The Department of Transportation has secured commitments from major airlines to provide free rebooking, meals, and hotels when they are responsible for major delays or cancellations. The DOT has secured billions of dollars in refunds for passengers whose flights were cancelled, produced an airline customer service dashboard for parents who wish to sit next to their children on a flight, and required airlines to disclose hidden fees for checked bags and other accommodations.The Consumer Financial Protection Bureau will enforce these new rules to make sure every American has the opportunity to find the best deal for their family and that businesses engage in fair competition.I am proud of the work the Biden Administration and Congressional Democrats have accomplished for American consumers. For further updates on my work in Congress, I encourage you to visit my website. If you have any questions or concerns, or if you need assistance, please do not hesitate to call us at (202) 225-1492.