Junk Fee Prevention Act
- Bill Number
- H.R. 6430
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2025-12-04: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2026-05-13T08:06:38Z
AI-Generated Summary
Purpose of the Legislation
The Junk Fee Prevention Act aims to protect consumers from excessive, hidden, and unnecessary fees (often called "junk fees") by requiring clear pricing transparency, prohibiting deceptive practices, and ensuring fair refund policies across industries like lodging, ticketing, communications services, and air travel. It seeks to make total costs upfront and limit surprise charges.
Key Provisions
The bill is divided into three main sections targeting specific sectors:
- Consumer Protection from Hidden and Excessive Fees (Sec. 2):
- Requires "covered entities" (e.g., short-term lodging providers like hotels or vacation rentals, ticketing services for events, and others designated by the Federal Trade Commission or FTC) to display the full price—including all mandatory fees and government charges—in ads and at the initial price view.
- Prohibits changes to mandatory fees after advertisement and bans excessive or deceptive fees (e.g., fees misrepresented as optional or not proportional to the service cost).
- For event tickets: Mandates disclosure of total tickets available at least 72 hours before sale; requires clear refund policies upfront, including full refunds (fees included) if applicable; and for "speculative ticketing" (selling tickets not yet possessed), demands notice and full refunds if tickets aren't delivered timely.
- Allows the FTC to create rules on fee disclosures and defines terms like "mandatory fee" (e.g., unavoidable charges a reasonable consumer wouldn't expect) and "deceptive fee" (e.g., misrepresented amounts or purposes).
- Enforcement: FTC treats violations as unfair/deceptive practices under existing law, with civil penalties; states can sue on behalf of residents, but federal actions take precedence during pendency.
- Communications Service Fees (Sec. 3):
- Bans excessive early termination fees for "covered services" (e.g., broadband internet, voice/phone services, mobile data, or bundled video programming) and requires prorated credits for unused billing periods post-termination (exceptions for unreturned equipment or unpaid device costs).
- Mandates "truth in billing": Single-line aggregate (total) price on bills, clear end dates and post-promotion rates for temporary pricing (disclosed 60/30 days in advance), and optional itemization.
- For ads/promotions: Full aggregate price disclosure, including location-based variations and temporary rates; exemptions for legacy plans not offered to new customers.
- Directs the Federal Communications Commission (FCC) to study and potentially rule on disclosing or banning mandatory fees (e.g., those reasonably assumed included in advertised prices) within 180 days of enactment.
- Enforcement: FCC handles violations under the Communications Act of 1934, with standard penalties and powers.
- Air Carrier Ancillary Fee Transparency (Sec. 4):
- Amends U.S. transportation law to require airlines (U.S. and foreign carriers operating domestically) to report quarterly to the Department of Transportation (DOT) on revenue from "ancillary fees" (e.g., charges for baggage, seat selection, or reservation changes—termed "critical ancillary services" if key to buying decisions).
- Reports must detail total revenue, breakdowns by service type/class, collection methods (e.g., bundled in base fare or separate), and average charges per service.
- DOT must compile and publicly post a comparative report online each quarter.
- Expands airline record-keeping to track ancillary fee revenue sources.
Significant Changes to Existing Law
- Introduces new federal mandates for upfront total-price disclosure and bans on excessive/deceptive fees, building on but expanding FTC and FCC authority under laws like the Federal Trade Commission Act and Communications Act (no direct amendments to those, but incorporates their enforcement mechanisms).
- Adds specific ticketing and lodging rules not previously detailed in federal law, including ticket availability disclosures and speculative ticketing safeguards.
- For communications, eliminates early termination fees outright (previously unregulated federally) and standardizes billing transparency beyond current "truth-in-billing" rules.
- For airlines, creates novel quarterly reporting and public disclosure requirements for ancillary fees under 49 U.S.C. § 41708, enhancing existing consumer protection statutes without banning fees.
Potential Impacts
- On Citizens/Consumers: Increases transparency to help avoid surprises, potentially saving money on fees for lodging, events, phone/internet, and flights; improves refund rights, especially for tickets.
- On Government Agencies: Expands FTC, FCC, and DOT roles in rulemaking, enforcement, and data collection/reporting, increasing workload but providing tools for oversight; enables state attorneys general to act, fostering coordinated federal-state efforts.
- On Businesses: Requires compliance changes (e.g., pricing systems, disclosures) for providers in affected sectors, possibly raising costs but reducing deceptive practices; airlines face new reporting burdens.
- On International Relations: Minimal direct impact, though foreign airlines operating in the U.S. must comply with fee reporting, potentially influencing bilateral aviation agreements.
Main Stakeholders Affected
- Consumers: Primary beneficiaries through clearer pricing and protections against hidden costs.
- Businesses/Providers: Short-term lodging operators (e.g., hotels, Airbnb-like platforms), ticketing companies (primary/secondary markets), communications firms (e.g., ISPs, mobile carriers, cable providers), and airlines—must adapt operations and face penalties for non-compliance.
- Government Entities: FTC (general consumer fees), FCC (communications), DOT (airlines), and state attorneys general (enforcement support).
- Event Organizers/Venues: Indirectly affected via ticketing rules on availability and refunds.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens consumer protection by treating violations as unfair/deceptive acts, allowing FTC/FCC civil penalties (up to $50,120 per violation under existing FTC rules) and state lawsuits; preserves agency rulemaking under the Administrative Procedure Act (5 U.S.C. § 553) for flexibility. No explicit preemption of state laws, but federal actions limit parallel state suits during pendency.
- Constitutional: Aligns with Commerce Clause authority over interstate commerce (e.g., travel, communications); no apparent First Amendment issues, as disclosures are factual and not content-based.
- Political: Promotes bipartisan consumer advocacy by targeting "junk fees" in everyday services, potentially pressuring industries for self-regulation; rulemaking timelines could lead to ongoing debates on fee definitions and enforcement scope.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Bynum, Janelle S. [D-OR-5]
Cosponsors (3)
Rep. Sykes, Emilia Strong [D-OH-13], Rep. Johnson, Julie [D-TX-32], Rep. Salinas, Andrea [D-OR-6]
Recent Actions
- 2025-12-04: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-12-04: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-12-04: Introduced in House
- 2025-12-04: Introduced in House
Bill Versions
- Junk Fee Prevention Act — issued 2025-12-04 — PDF (20 pages)