The Federal Trade Commission’s proposed ‘junk fee’ rule is causing severe concern among legal counsel across a host of consumer-facing industries as they prepare for a potential surge in compliance work. These changes are in response to efforts to clamp down on hidden fees on products and services.
If this rule is adopted as anticipated, a plethora of companies may be required to undertake massive revamps of their operations. Changes could range from the way they display and advertise prices to modifications in restaurant menus. Their major aim would be to ensure that prices fully reflect all costs, particularly the often hidden mandatory fees. Joanne Needleman, a member of Clark Hill, commented on the subjective aspects of this rule might lead to a significant rise in litigation.
The proposed ‘junk fee’ rule has not been implemented just yet, and there is a link here for those who want to know more about its specifics. However, given the potential wide-ranging implications for industries and legal teams, monitoring developments closely will be of paramount importance.
The full proposal for the controversial rule can be found on the official FTC website. For detailed reading, a link to the FTC’s press release detailing the proposal is provided.