Minnesotans Could Get Relief From Hidden Fees With Rule Change

When was the last time you went out to eat or went out to make a purchase? If it's been a while, good for you, but you have been missing out on a bunch of junk fees being passed on to the consumers. The Federal Trade Commission is looking to end junk hidden fees with a new rule this fall, making the hidden charges illegal.

According to CNBC "Last year, 15% of restaurant owners added surcharges or fees to checks because of higher costs, according to the National Restaurant Association. In the second quarter, 3.7% of restaurant transactions processed by Square included a service fee, more than double the beginning of 2022, according to a recent report from the company."

The hidden fees are often looked at negatively by customers, as they are already feeling the pinch of higher prices for just about EVERYTHING, and then they get dinged with a credit card charge or convenience fee. These fees have gotten so bad in some places that online communities are making lists of places that charge the fees, to educate consumers, and in some ways as a warning.

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Restaurants aren't liking the thought of these fees going away, based on small margins already due to inflation. To keep some of the fees that have been instituted over recent history, "the National Restaurant Association said it’s pushing the FTC to protect three fees commonly charged by restaurants: large party, delivery, and credit card processing."

According to the FTC's website, "The proposed rule would ban businesses from running up the bills with hidden and bogus fees, ensure consumers know exactly how much they are paying and what they are getting, and help spur companies to compete on offering the lowest price. Businesses would have to include all mandatory fees when telling consumers a price, making it easier for consumers to comparison shop for the lowest price. The proposed rule would also have enforcement teeth, allowing the FTC to secure refunds for harmed consumers and seek monetary penalties against companies that do not comply with its provisions."

You can read the full proposed rule, here. 

What do you think about all the junk fees and tip-fatigue going on? Hit us up on the app!