Predatory tows left out of FTC's 'junk fees' ban

Trucking news and briefs for Monday, Dec. 23, 2024:

FTC reveals final ‘Junk Fees Rule’ without towing fees inclusion

The Federal Trade Commission last week announced a final Junk Fees Rule to prohibit bait-and-switch pricing and other tactics used to hide total prices and bury junk fees in the live-event ticketing and short-term lodging industries.

In the lead-up to the final rule being published, the Department of Transportation hoped FTC would include tow charges in the rule to hopefully cut down on predatory towing in trucking. The proposed rule sought to stop "businesses from charging hidden and bogus junk fees by requiring them to include all mandatory fees when quoting a price."

The final rule, however, specifically targets the live-event tickets and short-term lodging industries.

“People deserve to know up-front what they’re being asked to pay -- without worrying that they’ll later be saddled with mysterious fees that they haven’t budgeted for and can’t avoid,” said FTC Chair Lina M. Khan. “The FTC’s rule will put an end to junk fees around live event tickets, hotels, and vacation rentals, saving Americans billions of dollars and millions of hours in wasted time.”

While FTC’s rule doesn’t include towing fees, Khan added that she urges “enforcers to continue cracking down on these unlawful fees and encourage state and federal policymakers to build on this success with legislation that bans unfair and deceptive junk fees across the economy.”

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FTC also noted that “industries beyond live-event ticketing and short-term lodging are prohibited from deceiving consumers about fees and pricing per longstanding law. The FTC will use its law enforcement authority to continue to rigorously pursue bait-and-switch pricing tactics, such as drip pricing and misleading fees, in other industries through case-by-case enforcement.”

[Related: Trucking's best defense against predatory towing: A step-by-step guide]

Market conditions for shippers dipped in October

While carriers saw a positive market in October, shippers were on the opposite end of the equation, according to FTR.

FTR’s Shippers Conditions Index (SCI) declined in October to 1.3 from a 4.6 reading in September. Market conditions for shippers were not as favorable due to firmer fuel costs and tighter capacity.

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SCI readings might stay positive in the near term, but FTR expects more neutral readings soon, reflecting a greater balance between shippers and carriers. However, significant trade policy changes under incoming President Trump could yield a more volatile freight market.

“Announced tariffs on imports from Mexico and Canada and increased tariffs on Chinese goods along with other likely tariffs raise the level of uncertainty over market conditions for shippers in the near term,” said Avery Vise, FTR’s vice president of trucking. “We expect any additional pressure on supply chains and freight transportation due to changes in trade policy to be mostly temporary, but a few hiccups seem likely. Fortunately for shippers, transportation capacity is considerably more fluid than it was during the stressful 2020-2021 period.”

[Related: Diesel hovering around $3.50 as freight rates present a mixed bag]