All articles tagged with #hidden fees
A TikTok video reveals how some dealerships add hidden fees like doc fees and electronic filing fees to inflate the final price of a car, while others, like Long-Lewis Auto Group, avoid these charges and offer better transparency and pricing. Buyers should carefully review all fees and negotiate to avoid hidden costs.
A little-known data firm called MultiPlan helps health insurers maximize profits by negotiating lower payments for out-of-network claims, leaving patients responsible for the remaining balance. This practice has resulted in patients receiving unexpected bills amounting to tens of thousands of dollars, despite having insurance coverage. MultiPlan and insurers typically receive a percentage of the "savings" on each claim, creating a financial incentive to recommend lower payments. Confidential pricing and fee data, as well as insurance statements, have shed light on the extent of these hidden fees and the impact on patients.
The FCC has adopted a new rule requiring cable and satellite TV providers to display the total price of subscription plans, including extra fees, as a prominent single line item to eliminate the misleading practice of describing costs as taxes or surcharges. This move aims to make it easier for consumers to compare prices and eliminate unexpected fees on their bills. While the FCC sees this as a win for consumer protection, cable providers argue that it's unnecessary and will only cause further confusion in the marketplace.
Panera has agreed to settle three lawsuits alleging misleading menu prices and fees for delivery, with a $2 million payout fund available to eligible customers who made delivery orders between Oct. 1, 2020, and Aug. 31, 2021. Recipients can choose between cash or vouchers, with a claim deadline of June 10, 2024, and the next court hearing scheduled for May 31, 2024 in St. Louis, Missouri.
The Federal Trade Commission has introduced new regulations, known as the Combating Auto Retail Scams Rule, to prevent car dealers from engaging in deceptive practices such as hidden fees and bait-and-switch pricing. These tactics cost US auto consumers $3.4 billion annually and add 72 million hours to their shopping time. The rule prohibits misrepresentations about price, requires dealers to disclose the actual price, and bans add-on items that provide no value to consumers. It also prevents dealers from falsely suggesting military affiliations. The FTC hopes these regulations will create a fair and honest marketplace for car buyers.
The Federal Trade Commission (FTC) has introduced a new rule, called the Combating Auto Retail Scams Rule, aimed at preventing auto dealerships from using hidden fees and bait-and-switch tactics. The FTC estimates that these practices cost Americans $3.4 billion annually and add 72 million hours to their car shopping time. The rule prohibits misrepresentations about price and requires dealers to disclose the actual price, clarify that additional items like extended warranties are optional, and provide upfront information about the full monthly payment. It also bans add-on items that provide no value to consumers and prohibits dealers from falsely suggesting military affiliations. The rule comes in response to numerous consumer complaints and increased deceptive practices during the pandemic.
President Joe Biden aims to crack down on hidden fees, known as junk fees, and increase pricing transparency for consumer purchases. However, lobbyists representing corporations in industries such as airlines and ticket sales are pushing back against proposed rules that would require them to be more transparent about these fees. The airline industry, in particular, has been resistant to revealing the true cost of tickets earlier in the sale process, despite consumer complaints. The Department of Transportation has sought to create guidelines on refunds, baggage fees, and change fees, but airlines argue that the proposals may be impractical.
President Joe Biden has unveiled a proposal by the Labor Department to eliminate "junk fees" charged by financial advisers on retirement accounts. The new rule would require financial advisers to act in the best interest of account owners, closing loopholes in earlier laws. Biden specifically highlighted the impact of self-serving annuities that drain people's savings accounts. Under the rule, financial advisers who violate it would face penalties, including paying restitution and fines. The president's campaign against hidden fees aims to protect consumers and ensure fairness in the financial industry.
Ticketmaster, owned by Live Nation, is accused of hiding fees behind logins and menus, despite previously promising to display all-in pricing. A report by NBC News found that extra fees were still hidden behind multiple clicks, with the total price only visible after signing in or navigating through filter menus. Live Nation Ticketmaster representatives have disputed the report's accuracy and claimed to have contacted NBC for correction. Senator Amy Klobuchar has addressed Ticketmaster in a letter, demanding improved visibility of all-in pricing by the end of the month. Excessive fees have long been a source of frustration for concertgoers, travelers, and sports fans, with the issue gaining attention during Taylor Swift's tour last year.
The Federal Trade Commission (FTC) has proposed a rule to ban hidden and misleading fees, which cost consumers billions of dollars annually. These fees, known as junk fees, are often added to prices at the end of a purchase, making upfront prices appear artificially low. The proposed rule would require businesses to include all mandatory fees upfront, making it easier for consumers to compare prices. The ban would also cover "bogus fees" designed to deceive consumers. The Biden administration is pushing to eliminate such fees, and the Consumer Financial Protection Bureau has issued guidance to halt large banks from charging them.
California Governor Gavin Newsom has signed a new bill into law that prohibits hidden junk fees, ensuring that consumers are not surprised by undisclosed charges when purchasing tickets or booking accommodations. The legislation, which will take effect on July 1, 2024, aims to combat deceptive business practices and provide transparency to Californians. The Consumer Financial Protection Bureau estimates that Americans spend at least $29 billion annually on junk fees. President Joe Biden has also prioritized addressing junk fees as part of his administration's consumer protection efforts.
Hidden fees, also known as "junk fees," are becoming increasingly common as companies use them to raise prices without appearing to do so. These fees, such as delivery fees, service fees, and taxes, often go unnoticed until after the purchase is made. Studies show that consumers primarily focus on the listed price when making buying decisions, making them vulnerable to these additional charges. The White House has recognized the issue of hidden fees and has taken steps to address them, including cracking down on banks, airlines, and rental companies. While some businesses argue that fees are necessary to cover costs and stay competitive, the prevalence of excessive fees has raised concerns among consumers.
Ticket sales giants Ticketmaster and Live Nation have pledged to provide consumers with full pricing upfront, ending surprise fees at checkout during online purchases. Live Nation is set to pledge that all tickets for its shows sold through Ticketmaster will show one “clear, total price” starting in September. Other ticketing platforms such as SeatGeek and xBk have also pledged to introduce options for consumers to view full pricing. The move comes after the Biden administration began its push to crack down on so-called “junk fees” charged by banks and other companies before the midterm elections last year as part of an effort to lower costs for Americans amid record-high inflation.
Live Nation and SeatGeek will no longer hide fees from the total ticket cost after facing criticism from the White House and Congress over ticket sales for Taylor Swift's tour that included exorbitant hidden fees and platform outages. President Joe Biden has been on a crusade against "junk fees" and has proposed new rules targeting credit-card late fees, airlines, and concert ticket sales that aim to get rid of extra charges that aren't publicized clearly by companies. Live Nation and SeatGeek's moves are voluntary, but Biden is expected to call on other companies to make the same shift to "all-in" ticket pricing while renewing his call for Congress to eliminate hidden fees altogether through the Junk Fee Prevention Act.
The Texas Attorney General's Office has filed a lawsuit against Hyatt Hotels Corporation for violating Texas law by charging mandatory and unavoidable fees in addition to daily room rates. The lawsuit alleges that these fees were not transparently advertised and did not align with "resort-like" experiences. The Attorney General stated that these deceptive practices misled consumers and violated Texas law, and he will not stand by while Texas consumers are taken advantage of by Hyatt or any hotel chain that charges illegal hidden fees.