FTC’s Final “Junk Fees” Rule
The Federal Trade Commission has released its final “junk fees” rule. AFSA is pleased to report that the final rule is much narrower in scope and does not apply to financial services. The final rule includes a definition for “Covered Good or Service” to include only: live-event tickets or short-term lodging.
AFSA worked hard to ensure that the financial services industry would be exempted from this rulemaking, submitting a comment letter, meeting in person with the regulators, and having a Member of Congress ask FTC Chair Khan about this rulemaking during hearings. AFSA stressed that the several laws and regulations requiring clear disclosures by financial services providers already in place protected consumers from hidden fees, and that the originally proposed rulemaking would only introduce confusion into the marketplace. We are happy to see that this argument resonated with the FTC.
December 20th, 2024
