The bottom line if this proposal gets the green light, experts say it could potentially save you an average of 20% on each ticket, airfare, banking, and hotel transaction.
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Ben LaBolt with the Biden Administration says, "Companies should have to compete on price, not about how clever they can get about hiding what the actual fee actually is."
LaBolt says the proposal would crack down on junk bank fees.
"For typical transactions for consumers like checking and balance. You know, if you're checking your balance that should not cost the consumer money," LaBolt adds that some banks have already started eliminating overdraft and bounced check fees on their own. He adds, "We've seen those reduced by 86% and a number of the big banks commit to not having any of those fees moving forward."
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The proposal also requires businesses like apartments, airlines, and ticket brokers to show the full price upfront and also disclose whether the fees are refundable.
LaBolt said, "Will save consumers an average of 20% on each transaction. The burden moving forward will be on the company to rebate the consumer, pay a fine if they're not disclosing the entire ticket price upfront."
When it comes to this proposed rule, it will take several weeks for it to be finalized. Until then, the FTC is hoping companies will start to make these commitments on their own.
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