FTC Moves to Protect Consumers from Hidden Fees

Good news digital shoppers! The Federal Trade Commission (FTC) is proposing a rule to ban hidden junk fees to, which can significantly increase the price of goods and services when shopping online. Junk fees are often disclosed in small print or at checkout, making them difficult for consumers to understand, which is a common dark pattern adopted by big ecommerce giants.

Under the proposed rule, eCommerce platforms would have to disclose all fees upfront and to explain what each fee is for. Businesses would also be prohibited from charging fees for services that consumers have not explicitly agreed to.

"Prices are sometimes advertised as “free,” but are not in fact free when fees are added", finds the report.

The FTC estimates that consumers pay billions of dollars in junk fees each year. These fees can add up quickly, especially for low-income consumers. The proposed rule would help to protect consumers from these unfair and deceptive practices.

Why this is important:

Junk fees are a major financial burden on consumers. These tactics can make consumers spend a lot more than required. The FTC's proposed rule is a welcome step towards protecting consumers from these unfair and deceptive practices.

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