NCL CEO urges Congress to end companies’ addiction to junk fees

June 8, 2023

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 202-207-2831

WASHINGTON, DC – National Consumers League (NCL) CEO Sally Greenberg today urged Congress to do more to rein in predatory junk fees that plague millions of consumers and honest businesses. In testimony before the Senate Commerce Committee’s Consumer Protection Subcommittee on the need for federal action to rein in predatory junk fees, Greenberg urged Senators to support multiple pieces of consumer protection legislation, including President Biden’s Junk Fee Prevention Act.  

“American companies are addicted to junk fees,” said NCL CEO Greenberg. “These fees cause significant economic harm, especially to historically marginalized and economically vulnerable communities. Junk fees harm honest businesses, too, as consumers’ patronage is unfairly directed away from companies with the best price, quality, convenience, and honest practices to those with pricing that is higher, less transparent, and more deceptive. 

Greenberg urged Congress to support bills like the Junk Fee Prevention Act, which would rein in some of the worst offenders when it comes to junk fees; the Consumer Protection Remedies Act, which would fully restore the Federal Trade Commission’s ability to obtain monetary and other relief for consumers; and Forced Arbitration Injustice Repeal Act (FAIR Act), which would prohibit a pre-dispute arbitration agreement from being valid or enforceable if it requires arbitration of an employment, consumer, antitrust, or civil rights dispute.

“The Biden Administration and agencies like the Consumer Financial Protection Bureau, Department of Transportation, and Federal Trade Commission have taken steps to address the scourge of junk fees,” said Greenberg. “Congress can and should do more to support these initiatives.”