Additional fees that are often used to inflate the price of hotel and resort accommodation are also referred to as junk fees. Every year, millions of Americans planning their vacation are unpleasantly surprised by such fees, some of which are not disclosed until the very last moment, leaving them without any options but to comply and pay extra.

In Las Vegas, junk fees are also popular as resort fees and can significantly increase the final costs for reservations, creating an unpleasant experience for visitors. But thanks to President Joe Biden, junk fees may soon be eliminated.

Recently, the US president visited Sin City as a part of a campaign and voiced his discontent with junk fees on social media. Using X, the popular platform that was previously called Twitter, President Biden wrote: “We’ve made progress, but there is much more work to do to lower costs for American families.” Moreover, he added: “That’s why I’m taking action to bring down the price of insulin, prescription drugs, and energy and eliminating hidden junk fees companies use to rip you off.”

President Biden did not go into detail about the essence of the aforementioned junk fees. However, in a separate post on Monday, he criticized companies for using junk fees to take extra money from the pockets of hard-working citizens. President Biden is yet to confirm how the hidden junk fees would be eliminated.

“When companies sneak hidden junk fees into families’ bills, it can take hundreds of dollars a month out of their pockets and make it harder to make ends meet. That might not matter to the wealthy, but it’s real money to hardworking families—and it’s just plain wrong,“

wrote President Joe Biden on X

The Fight Against Junk Fees Continues

This is not the first time President Biden aimed at eliminating junk fees. Back in September, he once again raised concerns about the deceptive prices that are inflated for consumers with the help of additional, hidden fees. At the time, President Biden vowed that his administration “is working to crack down on those junk fees so you know what you are paying for upfront.”

Elsewhere on a similar matter, three lawsuits filed against casino and resort operators in Atlantic City were consolidated into one. The lawsuits alleged that six casinos in Atlantic City engaged in anticompetitive actions, inflating the hotel room rates in the city.

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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.

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