FTC Releases Proposed Rule Targeting “Junk” Fees
The Federal Trade Commission has proposed the "Rule on Unfair or Deceptive Fees," targeting businesses selling in physical and online locations. The rule aims to prevent misleading fee practices by mandating clear disclosure of the "Total Price" for goods and services, distinguishing mandatory and optional fees. It excludes certain fees like shipping and government charges, while prohibiting the artificial inflation of such fees. The rule also requires businesses to accurately categorize and disclose the purpose of charges and fees, and it will coexist with state laws offering greater protection. Comments on the Proposed Rule can be submitted within 60 days of its publication in the Federal Register. Compliance is vital for businesses given the increasing focus on fee-related issues by regulatory bodies.
C[FPB] You Later? Agency’s Future Hangs in the Balance After Oral Argument
On October 3, the Supreme Court heard arguments in Consumer Financial Protection Bureau v. Community Financial Services Association of America, Limited, regarding the Bureau's funding structure's constitutionality. A ruling in favor of the Fifth Circuit could affect the Bureau's existence and regulatory powers. Companies should prepare for compliance, and a broad ruling could disrupt the financial services industry. Enforcement may shift to the Federal Trade Commission and state attorneys general. A decision is expected by June 2024.
FTC Wins Administrative Challenge Against Intuit for Its TurboTax Advertising
In September 2023, the FTC successfully challenged Intuit's TurboTax advertising claims in an administrative battle. This outcome highlights the importance of accurate advertising practices in the tax software industry.
FTC Consumer Protection Chief Sam Levine Outlines FTC Priorities at the NAD Conference
In September, FTC Consumer Protection Chief Sam Levine discussed the FTC's priorities at the NAD Conference. His insights shed light on the agency's focus and direction in the realm of advertising law and consumer protection.