In an effort to combat rising costs, strengthen consumer protections, and promote transparency for consumers across Illinois, House Bill 228, also known as the ‘Junk Fee Ban Act’, passed the Illinois House of Representatives last week with the backing of State Representative Jeff Keicher.
“Too often, especially when shopping online, you get to the checkout thinking something only costs $40 because that’s what the price says, but then you get hit with $10-20 in junk fees and surcharges,” said Keicher. “Consumers deserve a transparent marketplace that reinforces fair competition, so you know that the price you see will be the same at checkout.”
The legislation provides that it is an unlawful practice for a person/business to advertise, display, or offer a price for goods or services that does not include all mandatory fees or surcharges. These charges, commonly labeled as service, processing, or convenience fees, mislead consumers, distort the marketplace, and place transparent businesses at a competitive disadvantage to others. Nationally, the average household pays an estimated $3,000 more per year due to hidden or misleading charges, with some studies showing consumers pay up to 20% more than the advertised price once fees are included.
For more information about the bill – Click Here.