How Ohio lawmakers are looking to crack down on ‘junk fees’
COLUMBUS, Ohio (WCMH) – A bill at the Statehouse aims to help Ohioans save money by requiring more transparency for “junk fees.”
House Bill 537, sponsored by Reps. Michele Grim (D-Toledo) and Munira Abdullahi (D-Columbus), would prohibit a supplier from advertising, displaying or offering a price for a good or service that does not include all mandatory fees and charges.
“Junk fees are unexpected and often hidden charges that companies pile on to all sorts of products and services, just because they can,” Grim said. “Charges that have no connection to anything and no justification other than corporations wanting more of our money.”
The charges often come in the form of “services fees,” “processing fees” or “convenience charges” when you are checking out and can tack on several extra dollars to what you thought the cost might be.
“These fees may pop up when you pay to buy a car, pay your credit card or cellphone bill, order delivery for dinner, or even when you pay your rent,” Grim said.
“These charges are often vague or minimal, but they do add up,” Abdullahi said.
Abdullahi said the “bad economic actors” charging the fees and not disclosing them up front are contributing to already hard times Ohioans are facing.
“Our hope is to better our constituents’ economic burden by mandating transparency,” she said.
Grim said it is estimated that Americans spend $90 billion a year on “junk fees.”
“The money Ohio families are losing to junk fees is money we’re not saving, investing or spending on actual goods and services,” Grim said. “Because these fees are often not disclosed or explained, we often do not realize this money has been charged for the purpose until it's gone.”
The bill would apply to every company with a few exceptions, like government taxes as fees are disclosed before the supplier accepts the payment.
The bill’s sponsors said there has been no particular pushback on the bill from lawmakers yet, and they are still working on the details of how it can effectively be mandated for companies that provide services both nationally and internationally.
The bill was just referred to committee on Tuesday and awaits its first hearing.