SPRINGFIELD, Ill. – Responding to the proliferation of hidden charges on purchases, Representative Stephanie Kifowit (D-Oswego) introduced legislation this week that would outlaw “junk fees,” ensuring consumers are not exposed to deceptive business practices that add unfair costs. The proposed bill, House Bill 4629, specifically targets hidden fees in Illinois transactions. It prohibits businesses from offering a price for goods or services that does not include all mandatory fees and charges, excluding taxes, fees imposed by the government, and shipping charges that will be reasonably and actually incurred. If passed, this legislation will make it mandatory for businesses to disclose the final total upfront. California passed a similar measure last year. "The aim of HB4629 is to ensure that the price Illinoisans see is the price they pay," stated Representative Kifowit. "Hidden fees are not just an inconvenience; they are a deceptive business practice that impacts hardworking families. This legislation is about transparency, fairness, and empowering consumers to make choices with full awareness of the costs involved."
Surprise “junk fees” have become a prevalent issue in consumer transactions, obscuring the true cost of a product or service until the final point of sale and hindering fair market competition. The proposed bill categorizes these fees as a "deceptive" business practice, aiming to put an end to practices that make it challenging for consumers to compare prices and make informed decisions. Representative Kifowit emphasized that the consequences of junk fees are not limited to inconvenience; they can add up to hundreds of dollars each month, particularly affecting working families and those striving to make ends meet. "Junk fees cost Americans tens of billions of dollars each year, disproportionately impacting lower-income households and people of color," added Representative Kifowit. "This legislation is a necessary step to protect consumers, promote fair competition, and ensure that businesses operate with transparency and integrity." The proposed legislation recognizes that mandatory fees charged at the back-end of a buying process contribute to consumer confusion and undermine fair market competition. If passed, HB4629 would put an end to hidden charges and ensure a level playing field for businesses that prioritize transparency. For more information, please contact [email protected] # # # January 31, 2024 Comments are closed.
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