The administration of U.S. President Joe Biden has announced a crackdown on so called “junk fees,” the surcharges that companies place on the goods and services they sell to the public.
The government crackdown is being carried out in partnership with two of America’s leading consumer-protection agencies, the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau.
Going forward, businesses operating in the U.S. will be prohibited from burying fees within a transaction and force them to present the amount and purpose of surcharges upfront.
Under the new rules, the FTC will be able to secure refunds for consumers if businesses violate the regulations pertaining to surcharges.
The Biden administration says it aims to save consumers more than $10 billion U.S. over the next decade.
The government is also targeting big banks by highlighting consumers’ right to access complete, accurate and free account information upon request according to a 2010 federal law.
The government also plans to require that banks and other financial institutions allow for the easy transfer of customers’ banking transaction data to competitors.
The Consumer Financial Protection Bureau has fined Wells Fargo (WFC) and Bank of America (BAC) in recent years for charging their customers excessive overdraft fees.
Earlier this year, the Biden administration released new rules pertaining to excessive credit card fees and has also targeted unfair practices related to concert tickets and other event fees.