These hidden fees pop up at the end of a transaction, right at the moment a consumer is about to purchase a product.
“Think about the last time you went out for dinner, or ordered online and saw a convenience fee, a service fee, a wellness fee that you weren’t quite sure what that was for,” said Rep. Emma Greenman, DFL-Minneapolis.
She’s carrying a bill this year to rein in the proliferation of businesses adding so-called hidden “junk fees” at the end of purchases, which have driven up the costs of everything from ordering at a restaurant and getting concert tickets to buying products online.
Greenman’s bill, which is ready for a full vote in the Minnesota House, would amend the state’s deceptive trade practices act and require any mandatory fee or surcharge to be included in the advertised or list price for goods and services.
“These junk fees have become impossible to avoid and leave consumers frustrated and confused and, importantly, make it impossible for them to comparison shop,” she said.
The state-level push is happening at the same time the federal government is trying to crack down on these kinds of fees. Minnesota U.S. Sen. Amy Klobuchar is pushing bills to stop hidden fees in ticket sales and hotel bookings. The Federal Trade Commission is working on rules to ban hidden and misleading fees and require businesses to provide consumers with the total price up front.
Consumer Reports estimates the average American family spends more than $3,000 annually on junk fees.
Representatives from businesses asked Minnesota lawmakers to pump the brakes on the bill at least until the federal government has finished its rule-setting process.