US President Joe Biden has reaffirmed his commitment to combating the proliferation of hidden fees, colloquially known as “junk fees,” that often catch consumers off guard when making reservations or purchasing tickets.
President Biden’s Crusade Against Deceptive Pricing Tactics Gains Momentum
In recent posts on X (Formerly Twitter), President Joe Biden voiced his concerns over these deceptive pricing tactics. He argued that such fees frequently make a stay or event significantly more expensive than initially advertised, leaving consumers feeling misled and frustrated. Amid ongoing concerns about rising inflation affecting everyday expenses, Biden is determined to tackle the issue of misleading online pricing schemes.
The President emphasized the importance of transparency, stating: “Concert tickets are hard enough to get; you shouldn’t have to pay surprise service fees on top of that. My Administration is working to crack down on those junk fees so you know what you are paying for upfront.”
This initiative to address hidden fees in the hospitality and entertainment industries was first introduced by President Biden in October 2022. At that time, he announced his intention to instruct the Federal Trade Commission to develop regulations aimed at curbing unfair and deceptive fees across various sectors.
Despite these efforts, progress on the issue has been slow at the federal level. In July, Senators Amy Klobuchar (D-Minnesota) and Jerry Moran (R-Kansas) introduced bipartisan legislation known as the Hotel Fees Transparency Act. The bill aimed to compel hotels and resorts to include resort fees and any additional charges, excluding taxes, in their advertised rates. However, the bill has stalled in the Senate Committee on Commerce, Science, and Transportation.
Gaming Industry and Politicians Clash Over Resort Fee Regulations
The gaming industry, represented by the American Gaming Association (AGA), opposes the mandatory inclusion of resort fees in advertised nightly rates, arguing that it would stifle their ability to compete and innovate. Senator Jacky Rosen, a Democrat from Nevada, who also serves on the committee, believes that many casinos and resorts in her state are already transparent in their booking policies.
Nevada’s Senator Catherine Cortez Masto (D) and Representative Dina Titus (D) support the idea of transparent pricing but suggest that legislation should focus more on ticket charges rather than regulating casinos and hotels. They emphasized the need to ensure that the administration’s proposals prioritize the elimination of surprise fees rather than punishing establishments that already disclose their fees upfront.
While President Biden’s commitment to addressing junk fees has garnered attention, some critics have questioned whether this issue should be a top priority, given more pressing economic concerns facing the US. Critics argue that with the cost of groceries and other essential items on the rise, the focus on concert ticket fees may appear misplaced.