See one price, pay another: NJ leaders target misleading ‘junk fees’

Officials want to get rid of some junk, so that you can keep more money in your pockets.

There's a push to eliminate so-called junk fees that you may encounter on a regular basis when purchasing goods or services such as a concert ticket or a hotel room — you see one advertised price, and then by the time you're ready to check out, the actual amount you're being asked to put out is much higher.

"These fees are now widespread," said U.S. Rep. Frank Pallone, D-N.J. 6th District. "It's really an effort by big corporations trying to squeeze every penny out of the consumer, without providing anything of value."

Pallone made his remarks on Monday during a press conference in Red Bank, where he touted federal legislation that would implement transparency measures on certain purchases so that consumers know what they're expected to pay upfront.

Pallone said it's wiser to get laws on the books, rather than just rules that can simply be pulled by future presidential administrations.

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In October, the Biden Administration announced actions to take on junk fees. The Federal Trade Commission proposed a rule that would prohibit junk fees, which the FTC itself described as "bogus." The FTC was accepting public comment on the proposal until February of this year.

At the same time, the Consumer Financial Protection Bureau wants to stop banks and credit unions from charging fees for providing basic information to consumers like bank account balances or a payoff amount on a loan.

And in December, the Federal Communications Commission proposed rules targeting early termination fees imposed by cable and satellite providers.

"New Jersey families and families across the country are inundated with exorbitant fees and hidden costs for so many of their day-to-day purchases and financial transactions," said Beverly Brown Ruggia, financial justice program director for New Jersey Citizen Action. "No one should have to navigate complicated unclear terms when they buy event tickets or book a hotel room."

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