A package of bills introduced by two Rhode Island lawmakers would prohibit businesses from imposing hidden fees on customers, a common practice that consumer advocates say is deceptive and harmful to consumers.
The legislation, spearheaded by state Sen. Linda Ujifusa (D-Dist. 11) and state Rep. K. Joseph Shekarchi (D-Dist. 23), would make it a deceptive trade practice in Rhode Island to advertise, display or offer a price for a good or service that does not include all mandatory fees or charges other than government taxes and shipping.
“Junk fees go by many names — convenience charges, facilities fees, service charges and more — but they are usually just an excuse to charge consumers more than the advertised price of an item or service,” said Ujifusa. “If the fee is mandatory, it’s part of the price. Telling consumers that the price is lower is false advertising that should be prohibited.”
The lawmakers say the hidden fees, which amount to $90 billion annually in the U.S., are a growing problem.
“I didn’t want to disappoint my grandchildren, so I just bought the tickets,” said Pearl Holloway, a Warwick resident who is spearheading the effort along with Ujifusa and Shekarchi. “I’m not alone.”
Holloway says she was horrified to learn that each of the tickets she bought online to see her grandchildren cost $151, up from $92, due to a $14.75 “service fee.”
The two lawmakers say the legislation would protect consumers from businesses that rely on mandatory fees, which they say are often used to disguised the true cost of an item or service.
“Junk fees hurt consumers and businesses because they make it impossible to compare actual prices,” Ujifusa said.
If the bill passes, Rhode Island would join 29 other states that have already taken action to ban junk fees.
Generative artificial intelligence (AI) assisted a What’sUpNewp journalist with the reporting included in this story.
