Junk Fee Prevention Act

II 118TH CONGRESS 1ST SESSION S. 916 To limit and eliminate excessive, hidden, and unnecessary fees imposed on consumers, and for other purposes. IN THE SENATE OF THE UNITED STATES MARCH 22, 2023 Mr. BLUMENTHAL (for himself and Mr. WHITEHOUSE) introduced the fol- lowing bill; which was read twice and referred to the Committee on Com- merce, Science, and Transportation A BILL To limit and eliminate excessive, hidden, and unnecessary fees imposed on consumers, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Junk Fee Prevention 4 Act’’. 5 SEC. 2. PROTECTING CONSUMERS FROM EXCESSIVE AND 6 HIDDEN FEES. 7 (a) PROTECTING CONSUMERS FROM HIDDEN 8 FEES.—A covered entity shall clearly and conspicuously 9 display, in each advertisement and when a price is first 10 VerDate Sep 11 2014 04:08 Mar 31, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S916.IS S916 kjohnson on DSK79L0C42PROD with BILLS 2 •S 916 IS shown to a consumer, the total price of the good or service 1 provided by the covered entity, including any mandatory 2 fees a consumer would incur during the transaction, which 3 shall not change during the purchase process. 4 (b) EXCESSIVE FEES.—A covered entity shall not im- 5 pose on a consumer or advertise any mandatory fees that 6 are excessive or deceptive for any good or service offered 7 by the covered entity. 8 (c) TICKET HOLDBACKS.—If a good or service pro- 9 vided by a covered entity is a ticket to a sporting event, 10 theater, musical performance, or an event at a place of 11 public amusement of any kind, the covered entity shall, 12 not less than 72 hours prior to the first public sale or 13 presale of such ticket, clearly and conspicuously disclose 14 to the public, including at the point of sale, the total num- 15 ber of tickets offered for sale by the covered entity or 16 available for the given event. 17 (d) PROTECTING REFUNDS.—A covered entity shall 18 clearly and conspicuously disclose any guarantee or refund 19 policy prior to the completion of a transaction by the con- 20 sumer and, in the event of a refund, provide a refund in 21 the amount of the total cost of the ticket including any 22 mandatory fees. 23 VerDate Sep 11 2014 04:08 Mar 31, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S916.IS S916 kjohnson on DSK79L0C42PROD with BILLS 3 •S 916 IS (e) SPECULATIVE TICKETING.—If a covered entity 1 does not possess a ticket at the time of the sale, it shall 2 provide to the consumer— 3 (1) a clear and conspicuous notice that the cov- 4 ered entity does not possess the ticket; and 5 (2) a full refund if the covered entity cannot 6 provide the ticket advertised to the consumer in a 7 timely manner prior to the event. 8 (f) RULEMAKING ON EXCESSIVE AND HIDDEN 9 FEES.—The Federal Trade Commission may promulgate 10 rules in accordance with section 553 of title 5, United 11 States Code, regarding the disclosure and imposition of 12 mandatory or deceptive fees, including any such fee not 13 described in subsections (a) through (e). 14 (g) EXCESSIVE FEES.—In considering whether a 15 mandatory fee is excessive, the Federal Trade Commission 16 or court shall take into consideration— 17 (1) whether the fee is reasonable and propor- 18 tional to the cost of the good or service provided by 19 the covered entity; 20 (2) the reason for which the covered entity 21 charges such fee; and 22 (3) any other factors determined appropriate by 23 the Federal Trade Commission or the court. 24 (h) ENFORCEMENT.— 25 VerDate Sep 11 2014 04:08 Mar 31, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S916.IS S916 kjohnson on DSK79L0C42PROD with BILLS 4 •S 916 IS (1) ENFORCEMENT BY THE COMMISSION.— 1 (A) UNFAIR OR DECEPTIVE ACTS OR PRAC- 2 TICES.—A violation this section or a regulation 3 promulgated thereunder shall be treated as a 4 violation of a rule defining an unfair or decep- 5 tive act or practice under section 18(a)(1)(B) of 6 the Federal Trade Commission Act (15 U.S.C. 7 57a(a)(1)(B)). 8 (B) POWERS OF THE COMMISSION.— 9 (i) IN GENERAL.—The Federal Trade 10 Commission shall enforce this section in 11 the same manner, by the same means, and 12 with the same jurisdiction, powers, and du- 13 ties as though all applicable terms and pro- 14 visions of the Federal Trade Commission 15 Act (15 U.S.C. 41 et seq.) were incor- 16 porated into and made a part of this sec- 17 tion. 18 (ii) PRIVILEGES AND IMMUNITIES.— 19 Any person who violates this section or a 20 regulation promulgated thereunder shall be 21 subject to the penalties and entitled to the 22 privileges and immunities provided in the 23 Federal Trade Commission Act (15 U.S.C. 24 41 et seq.). 25 VerDate Sep 11 2014 04:08 Mar 31, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S916.IS S916 kjohnson on DSK79L0C42PROD with BILLS 5 •S 916 IS (iii) AUTHORITY PRESERVED.—Noth- 1 ing in this section shall be construed to 2 limit the authority of the Federal Trade 3 Commission under any other provision of 4 law. 5 (2) ENFORCEMENT BY STATES.— 6 (A) IN GENERAL.—If the attorney general 7 of a State has reason to believe that a covered 8 entity has violated or is violating this section or 9 a regulation promulgated thereunder that af- 10 fects the residents of that State, the State, as 11 parens patriae, may bring a civil action in any 12 appropriate district court of the United States, 13 to— 14 (i) enjoin any further violation by the 15 covered entity; 16 (ii) enforce compliance with this sec- 17 tion or such regulation; 18 (iii) obtain other remedies permitted 19 under State law; and 20 (iv) obtain damages, restitution, or 21 other compensation on behalf of residents 22 of the State. 23 (B) NOTICE.—The attorney general of a 24 State shall provide prior written notice of any 25 VerDate Sep 11 2014 04:08 Mar 31, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S916.IS S916 kjohnson on DSK79L0C42PROD with BILLS 6 •S 916 IS action under subparagraph (A) to the Commis- 1 sion and provide the Commission with a copy of 2 the complaint in the action, except in any case 3 in which such prior notice is not feasible, in 4 which case the attorney general shall serve such 5 notice immediately upon instituting such action. 6 (C) INTERVENTION BY THE COMMIS- 7 SION.—Upon receiving notice under subpara- 8 graph (B), the Commission shall have the 9 right— 10 (i) to intervene in the action; 11 (ii) upon so intervening, to be heard 12 on all matters arising therein; and 13 (iii) to file petitions for appeal. 14 (D) LIMITATION ON STATE ACTION WHILE 15 FEDERAL ACTION IS PENDING.—If the Commis- 16 sion has instituted a civil action for violation of 17 this section or a regulation promulgated there- 18 under, no State attorney general, or official or 19 agency of a State, may bring a separate action 20 under subparagraph (A) during the pendency of 21 that action against any defendant named in the 22 complaint of the Commission for any violation 23 of this section or a regulation promulgated 24 thereunder that is alleged in the complaint. A 25 VerDate Sep 11 2014 04:08 Mar 31, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S916.IS S916 kjohnson on DSK79L0C42PROD with BILLS 7 •S 916 IS State attorney general, or official or agency of 1 a State, may join a civil action for a violation 2 of this section or a regulation promulgated 3 thereunder filed by the Commission. 4 (E) RULE OF CONSTRUCTION.—For pur- 5 poses of bringing a civil action under subpara- 6 graph (A), nothing in this section shall be con- 7 strued to prevent the chief law enforcement of- 8 ficer or official or agency of a State, from exer- 9 cising the powers conferred on such chief law 10 enforcement officer or official or agency of a 11 State, by the laws of the State to conduct inves- 12 tigations, administer oaths or affirmations, or 13 compel the attendance of witnesses or the pro- 14 duction of documentary and other evidence. 15 (i) DEFINITIONS.—In this section: 16 (1) COVERED ENTITY.— 17 (A) IN GENERAL.—The term ‘‘covered en- 18 tity’’ means— 19 (i) a provider of short-term lodging or 20 an entity that advertises rates or the pur- 21 chase of short-term lodging; 22 (ii) a provider of a ticketing service 23 that sells tickets for an event or retains the 24 authority to otherwise distribute tickets for 25 VerDate Sep 11 2014 04:08 Mar 31, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S916.IS S916 kjohnson on DSK79L0C42PROD with BILLS 8 •S 916 IS such event, whether as a primary seller of 1 tickets or in the secondary marketplace for 2 ticket sales; or 3 (iii) any other entity determined ap- 4 propriate by the Commission through a 5 rulemaking in accordance with section 553 6 of title 5, United States Code. 7 (B) SHORT-TERM LODGING.—For purposes 8 of subparagraph (A), the term ‘‘short-term 9 lodging’’ means any lodging that is offered for 10 an occupancy of less than 6 months. 11 (2) MANDATORY FEE.—The term ‘‘mandatory 12 fee’’ includes— 13 (A) any fee or surcharge that a consumer 14 is required to pay to purchase a good or service 15 being advertised; 16 (B) a fee or surcharge that is not reason- 17 ably avoidable; 18 (C) a fee or surcharge for a good or service 19 that a reasonable consumer would not expect to 20 be included with the purchase of the good or 21 service being advertised; or 22 (D) any other fee or surcharge determined 23 appropriate by the Commission. 24 VerDate Sep 11 2014 04:08 Mar 31, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S916.IS S916 kjohnson on DSK79L0C42PROD with BILLS 9 •S 916 IS SEC. 3. COMMUNICATIONS SERVICE FEES. 1 (a) ENDING EARLY TERMINATION FEES.— 2 (1) IN GENERAL.—A provider of a covered serv- 3 ice may not charge a fee to, or impose a requirement 4 that is excessive or unreasonable on, a consumer for 5 the early termination of a covered service. 6 (2) DEVICE PURCHASE AND RETURN.—Sub- 7 section (a) shall not prevent a provider of a covered 8 service from charging a consumer for— 9 (A) the cost of rental or loan equipment 10 that is not returned to the provider within a 11 reasonable period of time; or 12 (B) the outstanding cost of a purchased 13 device. 14 (3) REGULATIONS.—The Federal Communica- 15 tions Commission may promulgate regulations to 16 carry out this subsection. 17 (b) RULEMAKING ON MANDATORY FEES.—Not later 18 than 180 days after the date of enactment of this Act, 19 the Federal Communications Commission shall commence 20 a rulemaking proceeding— 21 (1) to consider whether and how the Federal 22 Communications Commission should— 23 (A) require the disclosure of mandatory 24 fees with respect to a covered service; or 25 VerDate Sep 11 2014 04:08 Mar 31, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S916.IS S916 kjohnson on DSK79L0C42PROD with BILLS 10 •S 916 IS (B) prohibit the imposition of mandatory 1 fees with respect to a covered service, in par- 2 ticular any such fee that a consumer would rea- 3 sonably assume to be included in the advertised 4 price of such service; and 5 (2) in which the Federal Communications Com- 6 mission may promulgate regulations to implement 7 the requirements or prohibitions described in para- 8 graph (1). 9 (c) ENFORCEMENT.— 10 (1) IN GENERAL.—A violation of this section or 11 a regulation promulgated under this section shall be 12 treated as a violation of the Communications Act of 13 1934 (47 U.S.C. 151 et seq.) or a regulation pro- 14 mulgated under that Act. 15 (2) MANNER OF ENFORCEMENT.—The Federal 16 Communications Commission shall enforce this sec- 17 tion and the regulations promulgated under this sec- 18 tion in the same manner, by the same means, and 19 with the same jurisdiction, powers, and duties as 20 though all applicable terms and provisions of the 21 Communications Act of 1934 (47 U.S.C. 151 et 22 seq.) were incorporated into and made a part of this 23 section. 24 (d) DEFINITIONS.—In this section: 25 VerDate Sep 11 2014 04:08 Mar 31, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S916.IS S916 kjohnson on DSK79L0C42PROD with BILLS 11 •S 916 IS (1) COVERED SERVICE.—The term ‘‘covered 1 service’’— 2 (A) means— 3 (i) internet service; 4 (ii) voice service (as defined in section 5 227(e)(8) of the Communications Act of 6 1934 (47 U.S.C. 227(e)(8)); 7 (iii) commercial mobile service (as de- 8 fined in section 332(d) of the Communica- 9 tions Act of 1934 (47 U.S.C. 332(d)); 10 (iv) commercial mobile data service 11 (as defined in section 6001 of the Middle 12 Class Tax Relief and Job Creation Act of 13 2012 (47 U.S.C. 1401)); or 14 (v) a service provided by a multi- 15 channel video programming distributor (as 16 defined in section 602 of the Communica- 17 tions Act of 1934 (47 U.S.C. 522)), to the 18 extent that such distributor is acting as a 19 multichannel video programming dis- 20 tributor; and 21 (B) includes any other service offered or 22 provided as part of a bundle or package with 23 any service described in clauses (i) through (v) 24 of subparagraph (A). 25 VerDate Sep 11 2014 04:08 Mar 31, 2023 Jkt 039200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S916.IS S916 kjohnson on DSK79L0C42PROD with BILLS 12 •S 916 IS (2) MANDATORY FEE.—The term ‘‘mandatory 1 fee’’ includes— 2 (A) any fee or surcharge that a consumer 3 is required to pay to purchase a good or service 4 being advertised; 5 (B) a fee or surcharge that is not reason- 6 ably avoidable; 7 (C) a fee or surcharge for a good or service 8 that a reasonable consumer would not expect to 9 be included with the purchase of the good or 10 service being advertised; or 11 (D) any other fee or surcharge determined 12 appropriate by the Federal Communications 13 Commission. 14 SEC. 4. SEATING YOUNG CHILDREN ADJACENT TO AN AC- 15 COMPANYING ADULT PASSENGER. 16 (a) IN GENERAL.—Subchapter I of chapter 417 of 17 title 49, United States Code is amended by adding at the 18 end the following: 19 ‘‘§ 41727. Seating young children adjacent to an ac- 20 companying adult on aircraft. 21 ‘‘(a) APPLICABILITY.—The requirements of this sec- 22 tion apply for the purposes of each scheduled flight seg- 23 ment to or from any airport in the United States. 24 ‘‘(b) GENERAL REQUIREMENT.— 25 VerDate Sep 11 2014 04:08 Mar 31, 2023 Jkt 039200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S916.IS S916 kjohnson on DSK79L0C42PROD with BILLS 13 •S 916 IS ‘‘(1) ASSIGNED SEATS.—Subject to subsection 1 (f), an air carrier or foreign air carrier that assigns 2 seats, or allows individuals to select seats, in ad- 3 vance of the date of departure of a fli [Text truncated for display. Full text available on Congress.gov.]