Consumer Alert: Survey Shows Overwhelming Majority of Consumers Affected by Junk Fees

This consumer alert is about junk fees, which are much more than just a nuisance. A report by U.S. Senator Bob Casey shows that they actually put a strain on household budgets. His report defines junk fees as hidden fees that are not disclosed in the original price – the consumer only learns about the fee at checkout.

Senator Casey estimated that common hidden costs for families include the cost of cable TV, grocery delivery, rent and banking. These costs alone can exceed $700 a month.
 
USA TODAY’s consumer finance column, Blueprint, surveyed 1,000 Americans and 93% of respondents said they’ve paid junk fees. And 91% believe junk fees are getting worse.

But here’s the thing: 83% say they’ve abandoned a purchase because they were hit with junk fees when paying. Not surprisingly, one of the most common purchases that incur junk fees is buying concert tickets.

Attorney General Merrick Garland cited excessive junk fees when announcing the lawsuit against Ticketmaster and Live Nation on Thursday, but Bryce Colburn, small business editor at USA TODAY Blueprint, said we see these fees in nearly every aspect of consumers’ lives.

“We’re seeing consumers becoming increasingly frustrated, but they’re also losing trust in all these companies that always end up adding these transaction fees that can sometimes increase the cost by 20 to 30 percent,” Colburn said. “I think that’s where we really need to start promoting price transparency. That’s the key to all of this.”

He says we need to use our power as consumers. If you see hidden junk fees, leave a review pointing them out. While the White House is fighting junk fees on many fronts, they won’t go away without serious consumer pushback.

Before you make a purchase, such as a car rental or hotel stay, call the company and ask about additional fees. Finally, online purchases often ask you to take a survey. Colburn encourages you to take these surveys and share your opinion.