Chairman Williams, Committee Republicans Pen Letter to FTC Regarding Junk Fee Rules

WASHINGTON, D.C. - Today, Congressman Roger Williams (R-TX), Chairman of the House Committee on Small Business, along with Reps., Pete Stauber (R-MN), Beth Van Duyne (R-TX), Jake Ellzey (R-TX), and Aaron Bean (R-FL) wrote to Chair Lina Khan of the Federal Trade Commission (FTC) regarding Junk Fee rules and their impact on small businesses.

This letter builds on the House Committee on Small Business' work to ensure federal agencies adhere to the Regulatory Flexibility Act and Small Business Regulatory Enforcement Fairness Act to protect small businesses from burdensome regulations and rulemaking.

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Read the full letterhere.

Read excerpts from the letter below:

"The House Committee on Small Business writes to discuss the Biden Administration's so called 'Junk Fee' rulemakings and their impact on small businesses. The Federal Trade Commission (FTC) has proposed multiple rules related to fees consumers may experience while shopping. These rulemakings will bury small businesses under an ever mountain of regulations-which would substantially strain their operations without providing the intended benefit to consumers. The Committee is concerned that these rules, especially when considered together, pose an undue burden on small businesses at a time when Main Street is already struggling due to over regulation, persistent inflation, and supply chain issues.

"Last fall, the FTC issued a rule banning what the Biden Administrations has decided to call 'junk fees.' In the rule, the FTC characterizes a fee as 'hidden' if it is not disclosed well in advance of the completion of the purchase. The sweeping nature of the ban fails to consider the diverse nature of small businesses or any innovation which could occur using unique fee structures, such as dynamic pricing or certain discount offerings. This rule impacts a wide range of industries including travel, hospitality, restaurant services, accommodations, and live events and would have a substantial impact on the pricing decisions of small businesses, disproportionately impacting the ability of small businesses to survive. Unfortunately, it seems the FTC failed to properly consider the costs to small businesses in this rule.

"The FTC also issued a rule which would prohibit certain fees in the car-buying process and require additional disclosures from car dealerships. The Committee has previously written to the FTC regarding this rule and its impact on small car dealerships. Currently, this rule is suspended pending the results of litigation, but the Committee has concerns with the FTC's claim that this rule will not increase costs for small businesses. It seems unlikely a business will be able to demonstrate they have complied with this rule or show that they have not violated this rule without increasing their operations costs. The Committee does appreciate the efforts the FTC has undertaken to lessen this rule's impact on small dealerships but believes improvements could still be made."

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