Newsletter
The new FTC rule is here to bring a lasting solution to hidden charges that businesses impose on customers. At the moment, this rule is open to criticism as the FTC is seeking comments from various agencies and the public. This rule is known as the Trade Regulation Rule on Unfair or Deceptive Fees, and it will be beneficial for online shoppers.
It turns out that the FTC did not just start working on this new rule, as it has been in the pipeline since last year. Ever since then, the FTC has received over 12,000 comments from various sources on the effects of these deceptive fees that certain businesses charge. Some of these comments form a supportive ground on which the FTC can stand and enforce this rule on businesses.
The FTC is now putting more pressure on ensuring that businesses stop any unfair and deceptive acts. These acts involve hiding extra charges from buyers during their online shopping experience. This has become a real issue for online shoppers, and it tends to make them spend more than their initial budget.
Details on how the new FTC rule might bring an end to hidden fees
If you shop online, there is a high possibility that you have come across hidden fees. These fees are annoying and can make some shoppers end their entire shopping experience because of their spending budget. For those shoppers who need the goods, they get to pay above their initial budget.
Lots of online stores use these hidden fees to attract customers to their business and then trap them. A person shopping for a pair of glasses might see them on a site for an affordable price, and this draws them in to make the purchase. Then at checkout, they get to see some extra fees that were never part of the initial pricing as listed on the site.
This action is unfair, and the FTC is now manning up to prevent businesses from using this tactic on their customers. Sales of tickets for the Taylor Swift Eras Tour put this action in the spotlight. Critics argued that the ticket sellers for this show were driving up ticket costs with hidden fees.
For this reason, the White House had to demand that the ticket sellers give users the full ticket price upfront. This might just be what the FTC aims to do with its new rule, as it might pressure online businesses to give shoppers the full price upfront. With this accurate pricing information, shoppers will be able to better plan their finances.
In the coming weeks, the FTC’s new rule will take effect as it aims to bring an end to hidden fees. Businesses that continue hiding the full prices of products on their websites might face a fine for such actions. What do you think about this new FTC rule, will it help improve your shopping experience?