Biden calls for passage of bill to stop ‘junk fees’ in his state of the Union : NPR

After a series of high-profile airline debacles this winter, President Biden devoted quite a bit of airtime in his State of the Union address to the Unwanted Fee Prevention Act, an effort to curb fees. hidden fees and surcharges in a number of industries.

The proposed legislation would prevent companies from overcharging items such as additional resort fees at hotels, service charges at concerts and sporting events, and additional costs charged by airlines for family members can sit together.

“For example, we ask airlines to show you the full ticket price up front and to reimburse you if your flight is canceled or delayed,” Biden said.

“Baggage fees are high enough — they can’t just treat your child like baggage,” Biden said. “Americans are tired of being played for suckers.”

In October, the White House released background information on its efforts to reduce what it calls “junk fees” — efforts that include the Consumer Financial Protection Bureau (CFPB) eliminating billions of dollars in bank fees.

The White House argues that junk fees hurt markets.

“These fees can also create an uneven playing field for businesses, making companies that set prices fairly and transparently appear more expensive than their rivals,” the White House said.

The administration also pointed to racial disparities when it comes to extra fees, in that they disproportionately affect people of color.

For example, he cited a CFPB study that showed black consumers pay more in credit card late fees than other groups. A 2017 study also showed that Hispanic car buyers paid more in premiums.