National Taxpayers Union Foundation
NTUF filed comments on the Federal Trade Commission (FTC)’s proposed rule, Unfair and Deceptive Fees. The FTC wants this proposed regulation to protect consumers from hidden or deceptive fees by requiring the total price of a good or service to be displayed up front. In reality, the proposed regulation misses the mark. If implemented, this proposed regulation would harm consumers and businesses and create major legal and compliance issues.
In the proposed rule, the FTC proposes that government charges, such as taxes, do not have to be included in the total price. The FTC divides government charges into two groups: (1) charges imposed on a business, and (2) charges imposed on a taxpayer. However, this division misses two other common types of taxes: (3) Taxes imposed on a business by law and may, or must, be passed onto the taxpayer, and (4) taxes imposed on a business by law and may not be passed onto the taxpayer. By ignoring these types of taxes, the FTC is requiring retailers to act like lawyers and interpret whether state taxation laws are imposed on businesses or taxpayers. This would create mass confusion as businesses try to figure out how to comply with both state law and this proposed regulation. read more
Here in Vegas you can get a hotel advertised as $29 a night.
Final bill for ONE NIGHT: $108.62
There are two things at play here in my mind: transparency; and a government entity creating its own rules. Absolutely, a potential customer should be able to see the total cost of his hotel stay (or of any type of purchase). But given the recent Chevron-related ruling, does FTC have authority to create a rule and associated penalties?
I think that a quoted price would be considered a contract, so contract law might apply.
If it’s part of the federal government and its stated purpose is to protect consumers, then you know you are going to get fucked.
How many of these “hidden fees” are really government fees and taxes?
Didn’t SCOTUS already rule that agencies can’t just make up rules?
This is typical of this regime’s flagrant disregard for law.