BOISE, Idaho — As prices continue to rise for many services and items, consumers are getting frustrated with surprise charges tacked on to what they thought was the final bill.
They’re called "junk fees", hidden or unexpected charges added to certain types of online purchases. Ted Rossman, a Senior Industry Analyst at Bankrate.com says you’re likely to encounter them on purchases such as concert ticket surcharges, airline seat selection fees, credit card late fees, bank overdraft fees, hotel resort fees and more.
“Generally speaking, customers don't like hidden fees,” said Rossman. “People would rather just be presented with one price, and they can decide whether or not that's fair. They don't like the surprise gotcha at the end of the transaction."
Rossman says this is a growing concern for consumers, which is why President Joe Biden and his administration have made fighting “junk fees” a priority. And are working with some major companies to provide transparency when shopping.
"Just recently, the White House held an event with some of the large ticketing agencies,” Rossman said, “companies like Live Nation, Ticketmaster, Seatgeek. There's been an agreement among those companies to be more transparent in their fee structure."
Rossman says some types of fees, like sports tickets and home rentals, have become more transparent, but other purchases like airline seats or hotel resort fees have not. Still, Rossman says companies may lower junk fees but raise prices in other ways to make up the difference.
"I don't think people will really see savings from this. I do think they'll see more transparency,” said Rossman. “So that is a win for comparison shoppers that you'll have a better idea of what you're getting into. But I don't think prices will come down."
So what’s the best way to avoid these tacked-on fees? Financial experts suggest you read the fine print for anything you buy online, and if you don't understand why there’s an added fee, speak up and ask for an explanation, or make a call to the company and see if they’ll waive the charge.
