Pallone Calls for Legislative Action to Eliminate Hidden and Misleading Junk Fees

New Jersey Congressman Also Supports Rules that Would Ban Hidden and Misleading Fees in the Live Event, Car Rental, Hotel, and Cable Industries

Red Bank – Congressman Frank Pallone, Jr. (NJ-06) today held a press conference to call for Congressional action to eliminate hidden and misleading junk fees and lower costs for American families. Junk fees are fees that are not usually included in the overall advertised price of a good or service. They are often disclosed later in the purchasing stage and have little or no value to the consumer.

Last October, the Biden Administration announced new actions to crack down on junk fees and asked Congress to follow up on his regulatory actions with legislation. Pallone joined President Biden at the White House for the announcement and vowed to push for legislation in the Energy and Commerce Committee where he serves as the Ranking Member.

“Consumers should be able to enjoy live music or plan a vacation without fear of hidden fees that can unexpectedly break the bank. While the Biden Administration’s actions will bring much needed transparency to the live event, car rental, hotel, and banking industries, it’s past time to take legislative action and end this deceptive practice companies use to unfairly raise prices on consumers,” Pallone said. “I applaud the Biden Administration’s actions and will continue to fight to eliminate these misleading fees and lower prices for Americans.”

“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.  These fees and costs are a constant drag on their limited budgets,” said Beverly Brown Ruggia, New Jersey Citizen Action Financial Justice Program Director. “No one should have to navigate complicated unclear terms when they buy event tickets or book a hotel room. Once again, Representative Pallone is looking out for us with the TICKET Act and the No Hidden FEES Act, two bipartisan bills he has championed that will curb unfair and deceptive practices in ticket sales and hotel booking.”

“Independent music and performance venues, festivals, and promoters across the U.S. and in New Jersey applaud Representative Frank Pallone for calling attention to the importance of Congress passing ticketing reform this year,” said Stephen Parker, National Independent Venue Association Executive Director. “With Representative Pallone’s leadership and Congressional action on H.R. 3950, The TICKET Act, fans will be protected from deceptive and fraudulent websites, fake tickets, and non-transparent prices and fees when they try to get into their favorite shows. We stand with Representative Pallone and echo his call to action for Congress on ticketing.”

Pallone has been a strong supporter of eliminating junk fees, especially in the live event industry. In May 2023, Pallone introduced the BOSS and SWIFT Act with Congressman Bill Pascrell (NJ-09) to bring transparency and regulation to the live events ticket marketplace. The bill would require mandatory all-in pricing to ensure the true ticket price is clearly displayed and does not change during the check-out process. The bill also requires clear disclosures of refund policies and guarantees for consumers to have the choice of a full refund or a replacement ticket in a comparable or upgraded location if a ticket is not delivered.

In December, the Energy and Commerce Committee incorporated key provisions of Pallone’s bill into the TICKET Act, which would require all-in price disclosure for event tickets, ban speculative tickets, require refunds for canceled or postponed events, and prohibit deceptively named ticketing websites. The TICKET Act was passed by the Energy and Commerce Committee on a bipartisan basis. Pallone is working to advance the bill to the House floor for consideration.

In the fall, the White House announced that the Federal Trade Commission (FTC) would propose a rule that would ban businesses from charging hidden and misleading fees and require them to show the full price up front. The rule would also require companies disclose up front whether fees are refundable. This rule would eliminate surprise resort fees at check out and unexpected service fees to buy a live event ticket. The rule would also apply to other industries across the economy, including grocery delivery and restaurant fees, apartment rentals, car rentals, and more. Under the proposed rule, companies that fail to comply could face monetary penalties and requirements to provide refunds to consumers.

The White House also announced that the Consumer Financial Protection Bureau (CFPB) is taking action to require large banks and credit unions to provide basic information to consumers without charging fees—meaning no more fees for basic services like checking bank account balances, obtaining a payoff amount for a loan, or requesting account information needed for applications.

In December, the Federal Communications Commission (FCC) proposed rules to ban cable and direct broadcast satellite providers from imposing early termination fees. Early termination fees require subscribers to pay a fee for terminating a video service contract prior to its expiration date, making it costly for consumers to switch services. These fees penalize consumers for terminating service by requiring them to pay for services they choose not to receive. In March, the FCC will vote to finalize “all in” pricing rules for cable and satellite television services, so consumers aren’t surprised by additional fees after signing up for service at an advertised price. Pallone’s Energy and Commerce Committee oversees both the FTC and FCC.