Us Congress House Bill HB2463

Us Congress 2023-2024 Regular Session

• Introduced: 4/3/23
• Refer: 4/3/23
• Refer: 4/4/23
• Refer: 4/14/23

Caption

Junk Fee Prevention Act

Impact

The bill outlines specific rules applicable to 'covered entities', which encompass a wide range of service providers including those involved in ticketing for events and short-term lodging. By enforcing stricter guidelines on how fees are disclosed, the bill intends to foster a more consumer-friendly atmosphere. Compliance with these regulations will likely require changes in current practices, urging entities to adapt to more explicit marketing and pricing strategies to avoid misleading their customers about additional costs involved in their service offerings.

Summary

House Bill 2463, also known as the 'Junk Fee Prevention Act', aims to limit and eliminate excessive, hidden, and unnecessary fees imposed on consumers across various industries. This legislation seeks to enhance communication and transparency from service providers regarding mandatory fees that affect the total cost of goods and services. Among its primary objectives, the bill mandates that any advertisement of prices must clearly display the total costs, including any unavoidable fees, so that consumers are not misled during transactions.

Contention

A notable point of contention surrounding HB 2463 deals with defining what constitutes an 'excessive' or 'mandatory' fee. The bill grants the Federal Trade Commission the authority to establish regulations regarding these fees, which raises concerns among service providers about potential bureaucratic overreach and operational disruptions. Furthermore, the enforcement mechanisms outlined in the bill allow state attorneys general to take legal action against violators, potentially leading to increased litigation and regulatory scrutiny, which some stakeholders argue could impact market competitiveness and innovation.