Biden-Harris Administration Launches Initiative on Junk Fees and Related Pricing Practices
After President Joe Biden called on all agencies to reduce or eliminate hidden fees in September 2022, the Consumer Financial Protection Bureau (CFPB) took action to effectively eliminate billions in banking fees. Fees account for tens of billions of dollars in revenue – a substantial source of revenue in many industries, including transportation, banking, internet, and hospitality. The CFPB's actions work in tandem with other initiatives in progress through various federal agencies, including the Federal Communications Commission. The FCC has issued proposed rules that would, if finalized as proposed, require internet companies to display a standardized “Broadband Nutrition Label” that discloses their monthly prices, fees, and internet speeds – so customers can see which company is cheapest and companies will have to compete for business. The FCC anticipates completing this rulemaking by the end of 2022. In his remarks about this initiative, President Biden highlighted the FCC's Affordable Connectivity Program, a federal broadband subsidy program enabling qualifying low-income consumers to sign up for free or reduced-cost internet.
The President’s Initiative on Junk Fees and Related Pricing Practices Remarks by President Biden on Protecting American Consumers from Junk Fees