ATLANTA — On Wednesday, President Joe Biden announced new efforts his administration is taking to crack down on hidden fees some companies sneak onto event tickets, hotels or even utility bills.
Biden's administration announced this after the Federal Trade Commission proposed a ban on surprise fees, saying they can cost consumers tens of billions of dollars per year in unexpected costs.
The ban would require businesses to show the full price up front, saving customers time and money, according to FTC's chairwoman, Lina Khan.
“This is real money," she said. "It really adds up for people. We believe that the proposal that the FTC is putting forward is going to make the market much fairer for Americans and ultimately mean they're paying less."
The Biden administration says these fees that show up at the back end of the buying process make it harder to shop for the best deal, leading some consumers to pay upward of 20% more.
It also makes it harder for smaller businesses to compete, similar to the Ticketmaster fiasco when Taylor Swift fans tried to get tickets to her concert.
The proposed FTC rule will be published in the Federal Register, where for 60 days, consumers can submit comments.
In the meantime, Simone Williams with the Better Business Bureau recommends comparing prices with other websites before hitting buy, paying with cash, and watching out for so called cramming.
"Cramming is the illegal act of adding unauthorized service charges without your knowledge or approval," she said. "Consumer reports found that 54% of consumers who complained about a hidden or unexpected fee for theft really had that be taken off their bill or refund it. If you think that the fees are too high, keep shopping around."
To read more on this proposal, click here.