PHOENIX — To get Arizonans more money for their buck, state Rep. Analise Ortiz, D-District 24, will introduce new legislation to ban "junk fees" that are often added to the original listed price.
“Under my bill, the price you see is the price you pay -- period,” Ortiz told 12News. “That way [consumers] are not caught off guard by these surprise fees.”
While the language of the bill is still being finalized, it would essentially require a person who advertises, displays or offers a price for goods or services in the state, to include all the mandatory fees or charges in the listed price, excluding taxes.
“If a corporation violates that and puts a hidden convenience fee or processing charge, or something else, without being transparent to the consumer, my bill gives the attorney general authority to investigate that corporation and potentially bring a civil fine against them,” Ortiz said.
The Federal Trade Commission estimates that bogus fees can cost consumers tens of billions of dollars per year in unexpected costs. The agency is also proposing a rule to ban junk fees at the national level and give enforcement the ability to secure refunds for consumers and seek monetary penalties against companies who don’t comply.
“It also hurts small businesses who want to be honest and transparent with the customers, but their prices look artificially high in comparison to those corporations who have hidden fees,” Ortiz said. “So, this will level the playing field for small business owners as well.”
Ortiz said the bill has bipartisan support. She hopes it’ll get a hearing and if passed, could go into effect by the end of 2024.
“This is about saving the average Arizonan money, and making sure there is transparency in the market,” she said. “They deserve transparency when they go check out.”
The bill also calls for a clear message explaining the refund process when a customer makes a purchase.
UP TO SPEED