Hawaiʻi joins coalition in support of Federal Trade Commission rule outlawing ‘junk fees’

Hawaiʻi’s Department of Commerce and Consumer Affairs Office of Consumer Protection and Department of the Attorney General contributed to a comment letter filed Feb. 7 supporting a proposed Trade Regulation Rule on Unfair or Deceptive Fees by the Federal Trade Commission.

With this, Hawai‘i’s attorneys general joins a coalition of 19 state attorneys general supporting these proposed rules.

The FTC’s rule provisions include:

• Prohibiting ‘bait and switch’ advertising by requiring businesses, from the outset, to clearly and conspicuously disclose the total price, inclusive of any mandatory fees;
• Requiring businesses to more prominently display the total price when pricing information is advertised;
• Prohibiting businesses from misrepresenting the nature and purpose of any fee, and;
• Requiring businesses to clearly and conspicuously disclose the nature and purpose of certain fees (such as shipping charges and optional fees) before the consumer consents to pay.

The coalition backing this proposed rule is led by Pennsylvania Attorney General Michelle Henry and North Carolina Attorney General Josh Stein.

In their letter, the Hawaiʻi Office of Consumer Protection and attorneys general expressed support of the proposed FTC rule and highlighted their enforcement efforts in protecting consumers from deceptive fee practices. 

“We commend the collaborative efforts that went into supporting the Federal Trade Commission’s proposed Trade Regulation Rule on Unfair or Deceptive Fees,” said Mana Moriarty, executive director of the Office of Consumer Protection. “By advocating for measures such as prohibiting ‘bait and switch’ advertising, enhancing disclosure requirements, and preventing misrepresentation of fees, we strive to protect consumers and uphold the standards of fairness in the marketplace.”

“Junk fees harm consumers by hiding the true total price of goods and services, and they also harm honest businesses that refuse to deceive consumers by hiding or misrepresenting these additional fees,” said Deputy Attorney General Christopher Leong, of the Department of the Attorney General Commerce and Economic Development Division. “The Department of the Attorney General strongly supports FTC efforts to eliminate these unfair and deceptive practices.”