Section 1 Short title
This Act may be cited as the “Junk Fee Prevention Act”.
Junk Fee Prevention Act
A BILL
To limit and eliminate excessive, hidden, and unnecessary fees imposed on consumers, and for other purposes.
Sec. 2 Protecting consumers from excessive and hidden fees
Protecting consumers from hidden fees—
In general— A covered entity shall clearly and conspicuously display, in each advertisement and when a price is first shown to a consumer, the total price of the good or service provided by the covered entity, including any mandatory fees a consumer would incur during the purchase of the good or service and any mandatory government charge related to such purchase.
Price consistency— A covered entity shall ensure that any mandatory fee incurred by a consumer during the purchase process does not change from that advertised to the consumer.
Excessive fees— A covered entity shall not impose on a consumer or advertise any mandatory fees that are excessive or deceptive for any good or service offered by the covered entity.
Ticket holdbacks— If a good or service provided by a covered entity is a ticket to a sporting event, theater, musical performance, or other live performance that an audience watches as the live performance occurs, the covered entity shall, not less than 72 hours prior to the first public sale or presale of such ticket, clearly and conspicuously disclose to the public, including at the point of sale, the total number of tickets offered for sale by the covered entity or available for the given event.
Protecting refunds— A covered entity shall clearly and conspicuously disclose any guarantee or refund policy prior to the completion of a transaction by the consumer and, in the event of a refund, provide a refund in the amount of the total cost of the ticket including any mandatory fees.
Speculative ticketing— If a covered entity does not possess a ticket at the time of the sale, it shall provide to the consumer—
a clear and conspicuous notice that the covered entity does not possess the ticket; and
a full refund if the covered entity cannot provide the ticket advertised to the consumer in a timely manner prior to the event.
Rulemaking on excessive and hidden fees— The Federal Trade Commission may promulgate rules in accordance with section 553 of title 5, United States Code, regarding the disclosure and imposition of mandatory or deceptive fees, including any such fee not described in subsections (a) through (e).
Excessive fees— In considering whether a mandatory fee is excessive, the Federal Trade Commission or court shall take into consideration—
whether the fee is reasonable and proportional to the cost of the good or service provided by the covered entity;
the reason for which the covered entity charges such fee; and
any other factors determined appropriate by the Federal Trade Commission or the court.
Enforcement—
Enforcement by the Commission—
Unfair or deceptive acts or practices— A violation of this section or a regulation promulgated thereunder shall be treated as a violation of a rule defining an unfair or deceptive act or practice under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
Powers of the Commission—
In general— The Federal Trade Commission shall enforce this section in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated into and made a part of this section.
Privileges and immunities— Any person who violates this section or a regulation promulgated thereunder shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act (15 U.S.C. 41 et seq.).
Authority preserved— Nothing in this section shall be construed to limit the authority of the Federal Trade Commission under any other provision of law.
Enforcement by States—
In general— If the attorney general of a State has reason to believe that a covered entity has violated or is violating this section or a regulation promulgated thereunder that affects the residents of that State, the State, as parens patriae, may bring a civil action in any appropriate district court of the United States, to—
enjoin any further violation by the covered entity;
enforce compliance with this section or such regulation;
obtain other remedies permitted under State law; and
obtain damages, restitution, or other compensation on behalf of residents of the State.
Notice— The attorney general of a State shall provide prior written notice of any action under subparagraph (A) to the Commission and provide the Commission with a copy of the complaint in the action, except in any case in which such prior notice is not feasible, in which case the attorney general shall serve such notice immediately upon instituting such action.
Intervention by the Commission— Upon receiving notice under subparagraph (B), the Commission shall have the right—
to intervene in the action;
upon so intervening, to be heard on all matters arising therein; and
to file petitions for appeal.
Limitation on State action while Federal action is pending— If the Commission has instituted a civil action for violation of this section or a regulation promulgated thereunder, no attorney general of a State, or official or agency of a State, may bring a separate action under subparagraph (A) during the pendency of that action against any defendant named in the complaint of the Commission for any violation of this section or a regulation promulgated thereunder that is alleged in the complaint. An attorney general of a State, or official or agency of a State, may join a civil action for a violation of this section or a regulation promulgated thereunder filed by the Commission.
Rule of construction— For purposes of bringing a civil action under subparagraph (A), nothing in this section shall be construed to prevent the chief law enforcement officer or official or agency of a State, from exercising the powers conferred on such chief law enforcement officer or official or agency of a State, by the laws of the State to conduct investigations, administer oaths or affirmations, or compel the attendance of witnesses or the production of documentary and other evidence.
Definitions— In this section:
Covered entity—
In general— The term covered entity means—
a provider of short-term lodging or an online platform that allows for the booking of short-term lodging;
a provider of a ticketing service that sells tickets for an event or retains the authority to otherwise distribute tickets for such event, whether as a primary seller of tickets or in the secondary marketplace for ticket sales; or
any other entity determined appropriate by the Commission through a rulemaking in accordance with section 553 of title 5, United States Code.
Short-term lodging—
In general— Except as provided in clause (ii), the term short-term lodging means any lodging that is offered for an occupancy of less than 6 months or temporary sleeping accommodations at a hotel, motel, inn, short-term rental, vacation rental, or other place of lodging.
Exclusion— The term short-term lodging shall not include an accommodation of 6 months or more through a landlord-tenant relationship.
Deceptive fee— The term deceptive fee includes—
any fee for which the nature, purpose, amount, or refundability of such fee is misrepresented; and
any mandatory fee misrepresented as an optional fee that a consumer must opt out of.
Mandatory fee— The term mandatory fee includes—
any fee or surcharge that a consumer is required to pay to purchase a good or service being advertised;
a fee or surcharge that is not reasonably avoidable;
a fee or surcharge for a good or service that a reasonable consumer would not expect to be included with the purchase of the good or service being advertised; or
any other fee or surcharge determined appropriate by the Commission.
Sec. 3 Communications service fees
Ending early termination fees—
In general— A provider of a covered service may not charge a fee to, or impose a requirement that is excessive or unreasonable on, a consumer for the termination of a covered service before the end of any period specified in any agreement between the provider and the consumer.
Ending excess billing cycle charges— After termination of a covered service, the provider of the covered service shall provide to the consumer a prorated credit or rebate for the remaining days in the billing cycle.
Device purchase and return— This subsection does not prevent a provider of a covered service from charging a consumer for—
the cost of rental or loan equipment that is not returned to the provider within a reasonable period of time; or
the outstanding cost of a purchased device.
Regulations— The Federal Communications Commission may promulgate regulations to carry out this subsection.
Truth in billing and advertising—
Aggregate price transparency in billing—
In general— A provider of a covered service shall state an aggregate price for the covered service through a single, clear, easy-to-understand, and accurate line item on the bill of a consumer, including a bill for a legacy or grandfathered covered service plan.
Disclosure of end date of introductory or temporary price— A provider of a covered service shall state, on the bill of each consumer paying an introductory or temporary price, the date on which the introductory or temporary price ends by disclosing—
either—
the period during which the discounted price will be charged; or
the date on which the period will end, resulting in a price change for the covered service; and
the post-promotion rate not later than—
60 days before the date on which the introductory or temporary price ends; and
30 days before such date.
Itemization— A provider of a covered service may state an itemized explanation of the elements that compose the aggregate price required by subparagraph (A) on the bill of a consumer.
Aggregate price transparency for promotional materials—
In general— A provider of a covered service that communicates a price for the covered service in promotional materials shall state an aggregate price for the covered service and, at the option of the provider of the covered service, an itemized explanation of the elements of such price in a clear, easy-to-understand, and accurate manner.
Disclosure of location-dependent pricing— If the aggregate price described in subparagraph (A) fluctuates based on service location, the provider of a covered service shall state where and how a consumer may obtain the location-specific aggregate price, such as electronically or by contacting a customer service or sales representative.
Disclosure of temporary aggregate pricing— If part or all of the aggregate price described in subparagraph (A) is temporary, a provider of a covered service shall state the post-promotion rate, the date on which the post-promotion rate was calculated, and the period for which each rate applies in the promotional materials.
Itemization— A provider of a covered service may state an itemized explanation of the elements that compose the aggregate price required by subparagraph (A) in the promotional materials.
Exception— The requirements under this paragraph shall not apply to the marketing of legacy or grandfathered covered service plans that are not generally available to new customers.
Rulemaking on mandatory fees—
Initial rulemaking proceeding— Not later than 180 days after the date of enactment of this Act, the Federal Communications Commission shall commence a rulemaking proceeding—
to consider whether and how the Federal Communications Commission should—
require the disclosure of mandatory fees with respect to a covered service; or
prohibit the imposition of mandatory fees with respect to a covered service, in particular any such fee that a consumer would reasonably assume to be included in the advertised price of such service; and
in which the Federal Communications Commission may promulgate regulations to implement the requirements or prohibitions described in subparagraph (A).
Subsequent study or regulations— Any time after the completion of the rulemaking proceeding required under paragraph (1), the Federal Communications Commission may conduct a study or promulgate regulations regarding mandatory fees with respect to covered services.
Enforcement—
In general— A violation of this section or a regulation promulgated under this section shall be treated as a violation of the Communications Act of 1934 (47 U.S.C. 151 et seq.) or a regulation promulgated under that Act.
Manner of enforcement— The Federal Communications Commission shall enforce this section and the regulations promulgated under this section in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Communications Act of 1934 (47 U.S.C. 151 et seq.) were incorporated into and made a part of this section.
Definitions— In this section:
Covered service— The term covered service—
means—
broadband internet access service (as defined in section 8.1(b) of title 47, Code of Federal Regulations (or any successor regulation));
voice service (as defined in section 227(e)(8) of the Communications Act of 1934 (47 U.S.C. 227(e)(8)));
commercial mobile service (as defined in section 332(d) of the Communications Act of 1934 (47 U.S.C. 332(d)));
commercial mobile data service (as defined in section 6001 of the Middle Class Tax Relief and Job Creation Act of 2012 (47 U.S.C. 1401)); or
a service provided by a multichannel video programming distributor (as defined in section 602 of the Communications Act of 1934 (47 U.S.C. 522)), to the extent that such distributor is acting as a multichannel video programming distributor; and
includes any other service offered or provided as part of a bundle or package with any service described in clauses (i) through (v) of subparagraph (A).
Mandatory fee— The term mandatory fee includes—
any fee or surcharge that a consumer is required to pay to purchase a covered service;
any fee or surcharge that is not reasonably avoidable;
a fee or surcharge for a good or service that a reasonable consumer would not expect to be included with the purchase of the good or service being advertised; and
any other fee or surcharge determined appropriate by the Federal Communications Commission.
Promotional material— The term promotional material includes video programming in which a provider of a covered service advertises or markets a covered service to consumers.
Sec. 4 Air carrier ancillary fee transparency
Reporting requirements— Section 41708 of title 49, United States Code, is amended by adding at the end the following new subsection:
“(d) Ancillary fees
“(1) Quarterly reports
“(A) In general—The Secretary shall require any air carrier or foreign air carrier operating in the United States to file with the Secretary a report for each quarter of the fiscal year on the total revenue such air carrier or foreign air carrier earned from ancillary fees (as defined in paragraph (2)).
“(B) Contents—A quarterly report filed by an air carrier or foreign air carrier under subparagraph (A) shall include, at a minimum, the following information:
“(i) The revenue received from ancillary fees during the reporting period, provided in an exact dollar amount, including—
“(I) the total amount received;
“(II) the total amount disaggregated by each critical ancillary service provided; and
“(III) the total amount disaggregated by class of service.
“(ii) The manner in which the air carrier or foreign air carrier collects ancillary fees, including whether the fee for a critical ancillary service is included in the base fare price or charged to the consumer through another method.
“(iii) The average dollar amount charged to a consumer for each critical ancillary service provided.
“(C) Publication—Notwithstanding section 329(b)(1)(A), the Secretary shall compile the information provided in the quarterly reports filed pursuant to subparagraph (A) in a single quarterly report (which shall include a comparison of the total revenue received from ancillary fees by each air carrier or foreign air carrier) and publish such report on the internet website of the Department of Transportation.
“(2) Definitions—For purposes of this subsection:
“(A) Ancillary fees—The term ancillary fees means any fee charged, through a direct payment or other form of compensation, by an air carrier or foreign air carrier for the provision of—
“(i) a critical ancillary service; or
“(ii) any other service not subject to taxation under section 4261 of the Internal Revenue Code of 1986.
“(B) Critical ancillary service—The term critical ancillary service means, with respect to an air carrier or foreign air carrier, any supplemental service provided by the air carrier or foreign air carrier that is critical to the purchasing decision of a consumer, including—
“(i) transporting checked or carry-on baggage;
“(ii) modifying or canceling a reservation;
“(iii) selecting or otherwise indicating a preference for seating on an aircraft; or
“(iv) any other service determined appropriate by the Secretary.”
Record requirements— Section 41709(a) of title 49, United States Code, is amended by inserting “(including information regarding the source of revenue and whether such money was received from a base fare price or from an ancillary fee (as defined in section 41708(d))” after “receipts and expenditures of money”.