Connecticut is leading a national push to curb junk fees, according to Gov. Ned Lamont.
Lamont spoke at a virtual event held by the White House on Wednesday to talk about junk fees, and highlight the state’s efforts to eliminate hidden costs on purchases like plane and concert tickets.
“I like an informed consumer. I want them to know where they get the best value,” Lamont said. “That's how the market works really well. You can shop for value, know what it's going to cost, you know if it's going to meet your needs.”
The event, attended by lawmakers from around the country, highlighted efforts to get rid of the fees nationwide. A bill in the Connecticut legislature would require the fees to be disclosed on the original price tag — not at checkout.
U.S. Senator Richard Blumenthal (D-CT) has introduced similar federal legislation at the federal level.
“Concealed surprise fees — nickel and diming Americans to distraction—must be stopped,” Blumenthal said after the legislation was introduced. “Airline travel, concert going, common purchases — seemingly almost everywhere — consumers are compelled to pay hidden excessive charges. Our bill will help end this price gouging — forcing full disclosure upfront and restricting abusive fees. It will mandate basic common sense fairness and transparency, which consumers rightly demand and deserve.”
According to Federal Trade Commission Chair Lina Khan, they curb competition because consumers can’t accurately compare prices.
“Junk fees cost Americans over $90 billion a year, money that corporations are extracting from Americans just because they can,” Khan said. “These junk fees function as an invisible tax that inflates prices across the economy.”
Watch the full event here.
