8/3/2023 0 Comments Print pdf drip pro timerThe ANPR gives the example of resort fees charged for many hospitality bookings as a form of “drip pricing” it might address if the rulemaking moves forward.Īdditionally, the ANPR asks about a number of issues, including: As one example, the ANPR describes what it calls “drip pricing,” which refers to the practice of advertising the base part of a product or service’s price upfront, and then disclosing additional charges later in the purchasing process. The ANPR discusses fee practices across a number of sectors representing a wide swath of the economy, including telecommunications, hospitality, financial services, online commerce, travel, higher education, live events ticketing, and automobile dealerships, among others. However, it more broadly addresses fees characterized as “junk fees,” which it defines as “unfair or deceptive fees that are charged for goods or services that have little or no added value to the consumer, including goods or services that consumers would reasonably assume to be included within the overall advertised price.” The ANPR notes that the FTC has brought many cases alleging that certain fees are deceptive, including cases involving “hidden” fees. At the FTC’s OctoOpen Meeting (which we previewed here), the FTC voted to release the ANPR. As such, this proceeding will potentially impact how fees are charged across many industries and sectors, including telecommunications, hospitality, online commerce, and financial services.īelow, we provide additional background and context on the ANPR, and note key next steps and questions on which the FTC is seeking feedback. The ANPR is broad and focuses on the issue of “junk fees” across the economy as a whole. On October 20, 2022, the Federal Trade Commission (FTC) announced the launch of a new rulemaking process to address how fees are charged for goods or services, focusing on potentially “deceptive or unfair” fees that the FTC refers to as “junk fees.” As the first step in the process, the FTC released an Advance Notice of Proposed Rulemaking (ANPR), which asks questions about a number of practices regarding fee disclosures, and suggests that the FTC is considering approaches like “all-in pricing” that would more directly regulate how fees are disclosed in many contexts.
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