Earlier this week, the Federal Trade Commission (FTC) released a new Proposed Rule, widely referred to as the “Rule on Unfair or Deceptive Fees”. This comes after the FTC initially solicited comments through its Advance Notice of Proposed Rulemaking in November 2022. The purpose of the proposed rule is to combat the prevalence of “junk” fees, which are perceived as deceptive or unfair charges.
The new proposed rule would apply to all businesses that sell products or services in physical locations as well as online. It appears to be a comprehensive attempt to control spurious costs that customers often end up bearing, many times without realizing it until the payment stage.
This seems to be a clear signal from the authorities regarding a tightening of the regulatory screws on misleading pricing practices. While various stakeholders will be examining the potential implications and finalizing their responses, many would view this as a step in the right direction towards greater transparency and fairness.
The implications of this proposed rule should not be underestimated, particularly when it comes to businesses re-evaluating their pricing strategies and legal compliance. It will be crucial for businesses and legal professionals dealing with such matters to closely examine this proposed rule and understand its scope and potential impact.
For more in-depth details on the new proposed rule, refer to the full article on JD Supra, published by Venable LLP.