Junk Fee Prevention Act

I 118TH CONGRESS 1ST SESSION H. R. 2463 To limit and eliminate excessive, hidden, and unnecessary fees imposed on consumers, and for other purposes. IN THE HOUSE OF REPRESENTATIVES APRIL 3, 2023 Mr. GALLEGO (for himself and Mr. JACKSON of North Carolina) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committee on Transportation and In- frastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the juris- diction of the committee concerned 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 VerDate Sep 11 2014 22:14 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2463.IH H2463 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HR 2463 IH SEC. 2. PROTECTING CONSUMERS FROM EXCESSIVE AND 1 HIDDEN FEES. 2 (a) PROTECTING CONSUMERS FROM HIDDEN 3 FEES.—A covered entity shall clearly and conspicuously 4 display, in each advertisement and when a price is first 5 shown to a consumer, the total price of the good or service 6 provided by the covered entity, including any mandatory 7 fees a consumer would incur during the transaction, which 8 shall not change during the purchase process. 9 (b) EXCESSIVE FEES.—A covered entity shall not im- 10 pose on a consumer or advertise any mandatory fees that 11 are excessive or deceptive for any good or service offered 12 by the covered entity. 13 (c) TICKET HOLDBACKS.—If a good or service pro- 14 vided by a covered entity is a ticket to a sporting event, 15 theater, musical performance, or an event at a place of 16 public amusement of any kind, the covered entity shall, 17 not less than 72 hours prior to the first public sale or 18 presale of such ticket, clearly and conspicuously disclose 19 to the public, including at the point of sale, the total num- 20 ber of tickets offered for sale by the covered entity or 21 available for the given event. 22 (d) PROTECTING REFUNDS.—A covered entity shall 23 clearly and conspicuously disclose any guarantee or refund 24 policy prior to the completion of a transaction by the con- 25 sumer and, in the event of a refund, provide a refund in 26 VerDate Sep 11 2014 22:14 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2463.IH H2463 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •HR 2463 IH the amount of the total cost of the ticket including any 1 mandatory fees. 2 (e) SPECULATIVE TICKETING.—If a covered entity 3 does not possess a ticket at the time of the sale, it shall 4 provide to the consumer— 5 (1) a clear and conspicuous notice that the cov- 6 ered entity does not possess the ticket; and 7 (2) a full refund if the covered entity cannot 8 provide the ticket advertised to the consumer in a 9 timely manner prior to the event. 10 (f) RULEMAKING ON EXCESSIVE AND HIDDEN 11 FEES.—The Federal Trade Commission may promulgate 12 rules in accordance with section 553 of title 5, United 13 States Code, regarding the disclosure and imposition of 14 mandatory or deceptive fees, including any such fee not 15 described in subsections (a) through (e). 16 (g) EXCESSIVE FEES.—In considering whether a 17 mandatory fee is excessive, the Federal Trade Commission 18 or court shall take into consideration— 19 (1) whether the fee is reasonable and propor- 20 tional to the cost of the good or service provided by 21 the covered entity; 22 (2) the reason for which the covered entity 23 charges such fee; and 24 VerDate Sep 11 2014 22:14 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2463.IH H2463 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •HR 2463 IH (3) any other factors determined appropriate by 1 the Federal Trade Commission or the court. 2 (h) ENFORCEMENT.— 3 (1) ENFORCEMENT BY THE COMMISSION.— 4 (A) UNFAIR OR DECEPTIVE ACTS OR PRAC- 5 TICES.—A violation this section or a regulation 6 promulgated thereunder shall be treated as a 7 violation of a rule defining an unfair or decep- 8 tive act or practice under section 18(a)(1)(B) of 9 the Federal Trade Commission Act (15 U.S.C. 10 57a(a)(1)(B)). 11 (B) POWERS OF THE COMMISSION.— 12 (i) IN GENERAL.—The Federal Trade 13 Commission shall enforce this section in 14 the same manner, by the same means, and 15 with the same jurisdiction, powers, and du- 16 ties as though all applicable terms and pro- 17 visions of the Federal Trade Commission 18 Act (15 U.S.C. 41 et seq.) were incor- 19 porated into and made a part of this sec- 20 tion. 21 (ii) PRIVILEGES AND IMMUNITIES.— 22 Any person who violates this section or a 23 regulation promulgated thereunder shall be 24 subject to the penalties and entitled to the 25 VerDate Sep 11 2014 22:14 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2463.IH H2463 pbinns on DSKJLVW7X2PROD with $$_JOB 5 •HR 2463 IH privileges and immunities provided in the 1 Federal Trade Commission Act (15 U.S.C. 2 41 et seq.). 3 (iii) AUTHORITY PRESERVED.—Noth- 4 ing in this section shall be construed to 5 limit the authority of the Federal Trade 6 Commission under any other provision of 7 law. 8 (2) ENFORCEMENT BY STATES.— 9 (A) IN GENERAL.—If the attorney general 10 of a State has reason to believe that a covered 11 entity has violated or is violating this section or 12 a regulation promulgated thereunder that af- 13 fects the residents of that State, the State, as 14 parens patriae, may bring a civil action in any 15 appropriate district court of the United States, 16 to— 17 (i) enjoin any further violation by the 18 covered entity; 19 (ii) enforce compliance with this sec- 20 tion or such regulation; 21 (iii) obtain other remedies permitted 22 under State law; and 23 VerDate Sep 11 2014 22:14 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2463.IH H2463 pbinns on DSKJLVW7X2PROD with $$_JOB 6 •HR 2463 IH (iv) obtain damages, restitution, or 1 other compensation on behalf of residents 2 of the State. 3 (B) NOTICE.—The attorney general of a 4 State shall provide prior written notice of any 5 action under subparagraph (A) to the Commis- 6 sion and provide the Commission with a copy of 7 the complaint in the action, except in any case 8 in which such prior notice is not feasible, in 9 which case the attorney general shall serve such 10 notice immediately upon instituting such action. 11 (C) INTERVENTION BY THE COMMIS- 12 SION.—Upon receiving notice under subpara- 13 graph (B), the Commission shall have the 14 right— 15 (i) to intervene in the action; 16 (ii) upon so intervening, to be heard 17 on all matters arising therein; and 18 (iii) to file petitions for appeal. 19 (D) LIMITATION ON STATE ACTION WHILE 20 FEDERAL ACTION IS PENDING.—If the Commis- 21 sion has instituted a civil action for violation of 22 this section or a regulation promulgated there- 23 under, no State attorney general, or official or 24 agency of a State, may bring a separate action 25 VerDate Sep 11 2014 22:14 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2463.IH H2463 pbinns on DSKJLVW7X2PROD with $$_JOB 7 •HR 2463 IH under subparagraph (A) during the pendency of 1 that action against any defendant named in the 2 complaint of the Commission for any violation 3 of this section or a regulation promulgated 4 thereunder that is alleged in the complaint. A 5 State attorney general, or official or agency of 6 a State, may join a civil action for a violation 7 of this section or a regulation promulgated 8 thereunder filed by the Commission. 9 (E) RULE OF CONSTRUCTION.—For pur- 10 poses of bringing a civil action under subpara- 11 graph (A), nothing in this section shall be con- 12 strued to prevent the chief law enforcement of- 13 ficer or official or agency of a State, from exer- 14 cising the powers conferred on such chief law 15 enforcement officer or official or agency of a 16 State, by the laws of the State to conduct inves- 17 tigations, administer oaths or affirmations, or 18 compel the attendance of witnesses or the pro- 19 duction of documentary and other evidence. 20 (i) DEFINITIONS.—In this section: 21 (1) COVERED ENTITY.— 22 (A) IN GENERAL.—The term ‘‘covered en- 23 tity’’ means— 24 VerDate Sep 11 2014 22:14 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2463.IH H2463 pbinns on DSKJLVW7X2PROD with $$_JOB 8 •HR 2463 IH (i) a provider of short-term lodging or 1 an entity that advertises rates or the pur- 2 chase of short-term lodging; 3 (ii) a provider of a ticketing service 4 that sells tickets for an event or retains the 5 authority to otherwise distribute tickets for 6 such event, whether as a primary seller of 7 tickets or in the secondary marketplace for 8 ticket sales; or 9 (iii) any other entity determined ap- 10 propriate by the Commission through a 11 rulemaking in accordance with section 553 12 of title 5, United States Code. 13 (B) SHORT-TERM LODGING.—For purposes 14 of subparagraph (A), the term ‘‘short-term 15 lodging’’ means any lodging that is offered for 16 an occupancy of less than 6 months. 17 (2) MANDATORY FEE.—The term ‘‘mandatory 18 fee’’ includes— 19 (A) any fee or surcharge that a consumer 20 is required to pay to purchase a good or service 21 being advertised; 22 (B) a fee or surcharge that is not reason- 23 ably avoidable; 24 VerDate Sep 11 2014 22:14 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2463.IH H2463 pbinns on DSKJLVW7X2PROD with $$_JOB 9 •HR 2463 IH (C) a fee or surcharge for a good or service 1 that a reasonable consumer would not expect to 2 be included with the purchase of the good or 3 service being advertised; or 4 (D) any other fee or surcharge determined 5 appropriate by the Commission. 6 SEC. 3. COMMUNICATIONS SERVICE FEES. 7 (a) ENDING EARLY TERMINATION FEES.— 8 (1) IN GENERAL.—A provider of a covered serv- 9 ice may not charge a fee to, or impose a requirement 10 that is excessive or unreasonable on, a consumer for 11 the early termination of a covered service. 12 (2) DEVICE PURCHASE AND RETURN.—Sub- 13 section (a) shall not prevent a provider of a covered 14 service from charging a consumer for— 15 (A) the cost of rental or loan equipment 16 that is not returned to the provider within a 17 reasonable period of time; or 18 (B) the outstanding cost of a purchased 19 device. 20 (3) REGULATIONS.—The Federal Communica- 21 tions Commission may promulgate regulations to 22 carry out this subsection. 23 (b) RULEMAKING ON MANDATORY FEES.—Not later 24 than 180 days after the date of enactment of this Act, 25 VerDate Sep 11 2014 22:14 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H2463.IH H2463 pbinns on DSKJLVW7X2PROD with $$_JOB 10 •HR 2463 IH the Federal Communications Commission shall commence 1 a rulemaking proceeding— 2 (1) to consider whether and how the Federal 3 Communications Commission should— 4 (A) require the disclosure of mandatory 5 fees with respect to a covered service; or 6 (B) prohibit the imposition of mandatory 7 fees with respect to a covered service, in par- 8 ticular any such fee that a consumer would rea- 9 sonably assume to be included in the advertised 10 price of such service; and 11 (2) in which the Federal Communications Com- 12 mission may promulgate regulations to implement 13 the requirements or prohibitions described in para- 14 graph (1). 15 (c) ENFORCEMENT.— 16 (1) IN GENERAL.—A violation of this section or 17 a regulation promulgated under this section shall be 18 treated as a violation of the Communications Act of 19 1934 (47 U.S.C. 151 et seq.) or a regulation pro- 20 mulgated under that Act. 21 (2) MANNER OF ENFORCEMENT.—The Federal 22 Communications Commission shall enforce this sec- 23 tion and the regulations promulgated under this sec- 24 tion in the same manner, by the same means, and 25 VerDate Sep 11 2014 22:14 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H2463.IH H2463 pbinns on DSKJLVW7X2PROD with $$_JOB 11 •HR 2463 IH with the same jurisdiction, powers, and duties as 1 though all applicable terms and provisions of the 2 Communications Act of 1934 (47 U.S.C. 151 et 3 seq.) were incorporated into and made a part of this 4 section. 5 (d) DEFINITIONS.—In this section: 6 (1) COVERED SERVICE.—The term ‘‘covered 7 service’’— 8 (A) means— 9 (i) internet service; 10 (ii) voice service (as defined in section 11 227(e)(8) of the Communications Act of 12 1934 (47 U.S.C. 227(e)(8)); 13 (iii) commercial mobile service (as de- 14 fined in section 332(d) of the Communica- 15 tions Act of 1934 (47 U.S.C. 332(d)); 16 (iv) commercial mobile data service 17 (as defined in section 6001 of the Middle 18 Class Tax Relief and Job Creation Act of 19 2012 (47 U.S.C. 1401)); or 20 (v) a service provided by a multi- 21 channel video programming distributor (as 22 defined in section 602 of the Communica- 23 tions Act of 1934 (47 U.S.C. 522)), to the 24 extent that such distributor is acting as a 25 VerDate Sep 11 2014 22:14 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H2463.IH H2463 pbinns on DSKJLVW7X2PROD with $$_JOB 12 •HR 2463 IH multichannel video programming dis- 1 tributor; and 2 (B) includes any other service offered or 3 provided as part of a bundle or package with 4 any service described in clauses (i) through (v) 5 of subparagraph (A). 6 (2) MANDATORY FEE.—The term ‘‘mandatory 7 fee’’ includes— 8 (A) any fee or surcharge that a consumer 9 is required to pay to purchase a good or service 10 being advertised; 11 (B) a fee or surcharge that is not reason- 12 ably avoidable; 13 (C) a fee or surcharge for a good or service 14 that a reasonable consumer would not expect to 15 be included with the purchase of the good or 16 service being advertised; or 17 (D) any other fee or surcharge determined 18 appropriate by the Federal Communications 19 Commission. 20 SEC. 4. SEATING YOUNG CHILDREN ADJACENT TO AN AC- 21 COMPANYING ADULT PASSENGER. 22 (a) IN GENERAL.—Subchapter I of chapter 417 of 23 title 49, United States Code is amended by adding at the 24 end the following: 25 VerDate Sep 11 2014 22:14 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H2463.IH H2463 pbinns on DSKJLVW7X2PROD with $$_JOB 13 •HR 2463 IH ‘‘§ 41727. Seating young children adjacent to an ac- 1 companying adult on aircraft. 2 ‘‘(a) APPLICABILITY.—The requirements of this sec- 3 tion apply for the purposes of each scheduled flight seg- 4 ment to or from any airport in [Text truncated for display. Full text available on Congress.gov.]