S. 3367 — Junk Fee Prevention Act

This section establishes requirements for covered entities (i.e., providers of goods or services) to protect consumers from hidden and excessive fees, including (1) clearly and conspicuously displaying the total price—including mandatory fees and government charges—in advertisements and at first price display, with no changes during purchase; (2) prohibiting excessive or deceptive mandatory fees; (3) for event tickets, disclosing the total number of tickets available at least 72 hours before first public sale or presale; (4) disclosing refund policies before transaction completion and providing full refunds including fees; and (5) for speculative ticket sales, providing notice of non-possession and full refunds if undelivered timely. The section further authorizes the Federal Trade Commission (FTC) to promulgate rules under informal notice-and-comment procedures (5 U.S.C. §553) on disclosure and imposition of mandatory or deceptive fees; specifies factors for determining excessive fees (e.g., reasonableness relative to costs); and provides enforcement by treating violations as unfair or deceptive acts under FTC Act §18(a)(1)(B) (15 U.S.C. §57a(a)(1)(B))—with full FTC powers and remedies preserved—and by state attorneys general, who may seek injunctions, compliance, damages, or restitution after notice to the FTC (with FTC intervention rights and limits on parallel state actions).

This section prohibits providers of covered services from charging fees or imposing excessive or unreasonable requirements on consumers for early termination of service before the end of any agreement period and requires prorated credits or rebates for remaining days in the billing cycle (with exceptions for unreturned rental equipment or unpaid device costs). It requires such providers to state an aggregate price for covered services as a single, clear line item on consumer bills—including for legacy or grandfathered plans—with disclosures of introductory or temporary price end dates (via 60-day and 30-day notices) and optional itemization; similar aggregate price transparency and disclosures for temporary, location-dependent, or itemized pricing apply to promotional materials (except marketing of legacy plans unavailable to new customers). The section directs the Federal Communications Commission (FCC) to commence a rulemaking proceeding within 180 days to consider requiring disclosure or prohibiting mandatory fees (particularly those a consumer would reasonably assume included in advertised prices) and authorizes subsequent studies or regulations. Violations are enforceable by the FCC as under the Communications Act of 1934 (47 U.S.C. 151 et seq.). Covered services include broadband internet access service, voice service, commercial mobile service, commercial mobile data service, and services provided by multichannel video programming distributors (MVPDs).

This section establishes quarterly reporting requirements for air carriers and foreign air carriers operating in the United States on revenues from ancillary fees (i.e., fees for critical ancillary services such as checked or carry-on baggage, reservation modifications or cancellations, seat selection, or other services determined by the Secretary of Transportation, as well as any nontaxable services under IRC §4261) by adding a new subsection (d) to Section 41708 of title 49, United States Code. Reports must detail total revenue (disaggregated by service type and class of service), collection methods (e.g., included in base fare or charged separately), and average charges per critical service; the Secretary of Transportation must compile the data into a single comparative quarterly report and publish it on the Department of Transportation website. The section further amends Section 41709(a) of title 49, United States Code, to require carriers to maintain records identifying whether receipts derive from base fares or ancillary fees (as defined in new 49 U.S.C. §41708(d)).