In April of 2023, in response to increasing pressure, Congress introduced the Junk Fee Prevention Act. Although that federal bill has not yet passed, in October of 2023, the Federal Trade Commission (FTC) issued a notice of a proposed rule on “Unfair and Deceptive Fees.” The FTC stated that the proposed rule would “prohibit unfair or deceptive practices relating to fees for goods or services.” The Federal rule would require that all fees and charges be disclosed and that the pricing be “clearly and conspicuously” presented so as to be “difficult to miss” and “easily understandable.”

Absent such disclosures, the rule would consider certain pricing practices as a “bait and switch,” luring customers in with one advertised price but ultimately charging them a different final price for the same advertised item. In addition to the FTC’s proposed rule, other potential regulatory action is being considered under the Consumer Financial Protection Bureau, the Federal Communications Commission, the Department of Housing & Urban Development, and the Department of Transportation. But the federal government is not alone in its focus on deceptive pricing practices. Many state governments are also concerned with this issue.

There are already statutes around the country that legislate penalties for deceptive trade practices, including those relating to false marketing. Recently, the California State Legislature passed an amendment to their already existing California Consumers Legal Remedies (CLRA) law to specifically address added violations if a company “advertises, displays or offers goods or services at a price, but does not disclose all mandatory fees or charges when displaying the price.”