FTC lays out new rule that could end hidden fees | The agency is proposing a new rule that could require businesses, from hotels to ticket sellers, to provide clear disclosures on costs and whether…::The US Federal Trade Commission is proposing a new rule known as the Trade Regulation Rule on Unfair or Deceptive Fees that it hopes will stop businesses from charging consumers hidden fees.
Hey FTC: let’s have the govt set the example here and include sales tax in this rule. It is also a bullshit hidden fee, and there’s no reason we shouldn’t include it in the sticker price. You already require it to be included for gasoline, so why only gasoline?
Especially with hotels where there are 3 different taxes for $10s on the room.
so why only gasoline?
Oil lobby
Why would the oil lobby want tax to be included gasoline? The added transparency only raises the sticker price which reduces sales.
The added transparency only increases sales because people will buy cars knowing that listed price is what they are going to pay for gasoline.
It seems quite the stretch to think people would buy more cars because tax is included in the price of gasoline. Please provide some data that substantiates your theory.
It seems quite the stretch to think people would buy more cars because tax is included in the price of gasoline.
In what shop would you go? In one that charges listed price or one that charges more?
Most people would go to the one with the cheaper posted price but with hidden fees than the one with the more expensive all inclusive price. Market data shows this tactic works, and the fact of the matter is that people are consistently fooled into paying higher prices because of hidden fees.
Why else would most companies consistently hide fees rather than be transparent unless it positively affects their bottom line?
Hopefully this will include groceries. I hate when I go to buy something and it says $9.99 and I get up to the register and they hit me with this stupid, obnoxious hidden fee!
I only have a $10 bill, it says it costs less then $10. Why is it not false advertising to have it say $9.99 when it costs $12.37 at the register?
The whole thing is a scam.
I heard someone say they don’t like coming to America because it feels like everything is trying to scam you at once and honestly yeah
at least in the US pricing is somewhat consistent. Sticker price + local tax, which isn’t going to change shop to shop, just state to state or within city limits. If you go to China or the Middle East the “sticker price” is bogus and you’re expected to haggle with the merchant in many places.
True, haggle culture and the lack of it both have their pros and cons. Can’t really tell Walmart about an unexpected expense that came up and have them feel sympathy to lower the price lol. But also haggling for everything must be tiring. It’s also tiring feeling like I have no power over prices though, so yeah, pros and cons.
As someone with social anxiety, haggling for a better price is my worst social nightmare. It would only benefit those with a large mouth even though the sales employee is objected with selling the highest price. Better go for competitive pricing that atleast is fair for both parties.
Doubtful. Sales tax code is far more complex.
Because it was designed that way. In other countries its far more simple to implement.
Right, but you’re talking about potentially changing how 13,000 Jurisdictions structure their taxes. Not an easy under taking.
This is yet another proposal to end hidden fees that does nothing to medical billing, the single largest source of hidden fees.
Looking forward to this, my partners best friend helped pen this rule so it’s been a hot topic in the house for quite a while.
Love booking hotels and getting hot with a destination/resort fee.
