As President Biden Takes More Action on Junk Fees, MAGA GOP Opposes Protecting Consumers
October 11, 2023
Today, the Biden-Harris administration announced its most sweeping action yet to tackle junk fees and lower costs for working families. Meanwhile, Republicans are continuing to double down on MAGAnomics: siding with special interests and big corporations that line their own pockets while saddling families with higher costs.
Today, President Biden announced new efforts to crack down on junk fees and lower costs for American consumers.
USA Today: “The Biden administration is proposing a new rule to prohibit companies across the private sector from hiding fees from consumers, the president’s most sweeping action yet on so-called ‘junk fees.’
“The Federal Trade Commission’s rule would require all industries under its jurisdiction to show the full price up front to consumers, including for concert and sports tickets, hotel rooms, and apartment and car rentals. Violators would be subject to financial penalties and be required to compensate customers.”
Meanwhile, MAGA Republicans running for president have sided with corporate special interests over American consumers. Tim Scott, for example, thinks President Biden’s work to hold corporations accountable for their exorbitant fees is “socialism.”
Scott: “So the truth of the matter is that we need solutions for the American people. And it’s not a bunch of fees that will be eliminated by the president chatting fee control, income control, price control. It sounds more like socialism than free markets and capitalism that led to the lowest level of poverty, frankly, in the history of our country just a few years ago.”
MAGA Republicans in Congress have ignored junk fees while pocketing large contributions from the very companies saddling the hardworking families they were elected to represent with junk fees.
CNBC: “GOP lawmakers in the hearing criticized the Biden administration’s push to eradicate ‘junk fees,’ largely regulated by the CFPB. Such fees constitute surcharges that companies levy for consumer goods and services.”
The New Republic: “‘Technically, junk fees don’t exist, OK? That’s a figment of Rohit Chopra’s imagination,’ Congressman Blaine Luetkemeyer told The New Republic on Monday afternoon. ‘It’s a made-up word for a made-up authority that he’s got,’ continued the Missouri Republican, referring to Consumer Financial Protection Bureau Director Rohit Chopra.”
“On the other hand, during his seven terms in Congress, Luetkemeyer has been on the take for millions in contributions from insurance, financial services, and utilities companies—industries long known to saddle consumers with hidden costs and, to borrow a term, junk fees.
“Luetkemeyer is not alone in raking in campaign cash from industries that Chopra and the CFPB seek to regulate on behalf of American consumers. North Carolina GOP Congressman Patrick McHenry, the new chair of the House Financial Services Committee, has also raked in millions during his career in the House of Representatives from the industries over which his committee has direct jurisdiction: nearly $2.7 million from the securities and investment sectors, nearly $2 million from the insurance industry, and more, according to OpenSecrets.org.”