Junk Fee Rule Seeks to Restore Speedy FTC Relief for Consumers
Clayton Friedman, a partner in Troutman Pepper's Regulatory Investigations, Strategy + Enforcement Practice Group, was quoted in the October 12, 2023 Bloomberg Law article, " Junk Fee Rule Seeks to Restore Speedy FTC Relief for Consumers."
The new proposal would expand that authority to cover a wider swath of FTC-regulated businesses, including ticket brokers, hotel companies, and even websites that aggregate prices for travel and other services, said Clayton Friedman, a partner with Troutman Pepper Hamilton Sanders LLP who has represented companies in FTC actions.
The FTC's consumer protection authority covers most industries outside of financial services, common carriers, and a few others handled by other agencies. By putting a rule in place, the FTC can make clear which fees have to be disclosed without relying on individual enforcement actions to curb violations, Friedman said.
...
A rule would ensure all companies are on notice, allowing the FTC to bring swifter action, Friedman said.
"If I were in the commission and this was a priority, issuing the rule was a very smart way to go," he added.