Taking on Corporate Greed and Striking Junk Fees

Guest Opinion

By Sam Inglot | May 25, 2024

Days are getting warmer, summer is quickly approaching, and school is ending soon. This means booking trips on airlines, making hotel reservations, and spending with credit cards.

At some point, you’ll probably notice added fees and higher costs at checkout than what’s initially advertised. What you may or may not realize is that corporations are nickel-and-diming us with junk fees on pretty much every purchase to line their pockets…with little to no repercussions.

The reality is that our finances are not unique. We’re all just trying to pay the bills, save for the future, and enjoy life along the way. We’re also being preyed on by the same wealthy corporations that don’t care who we are, where we live, or how we live. They’re just after our money, and they weave a web of complex agreements, jargon, and hidden fees to get it.

While many Republicans work tirelessly to protect the interests of corporations and megamillionaires, Democrats are supporting initiatives that push back against corporate greed. In an effort to protect families from rising prices on everyday necessities, the Biden Administration is cracking down on unfair and predatory pricing by implementing an Executive Order on Promoting Competition in the American Economy.

Chaired by the Department of Justice (DOJ) and the Federal Trade Commission (FTC), a new Strike Force will be established to root out illegal corporate behavior. Democrats are taking on companies across multiple sectors—keeping price hikes in check and eliminating junk fees.

An obvious and often egregious example of these kinds of fees: air travel. If you’re on TikTok, you’ve probably seen viral videos of parents pleading with passengers to switch seats so they can be next to their child. Oftentimes we think, “Why didn’t you just book the seats together?”, but we forget that airlines can charge an absurd amount of money in order to do that after already booking your tickets.

Other times, airlines overbook their planes, knowing very well that they don’t have capacity for all the passengers who’ve bought their tickets. I’ve been tempted to buy tickets through a seemingly affordable airline, before realizing the surprise fees at checkout can add up to $100.

The Biden Administration has stepped up for us and announced a final rule to protect airline passengers from junk fees like this. This means no surprises with fees listed up front and requiring airlines to seat anyone 13 years or younger next to an accompanying adult without the extra charge. As a new dad, I’m very thankful for this change.

While many American families prefer to spend the summer locally to avoid airlines altogether, the Consumer Financial Protection Bureau (CFPB) still plans on saving them money. Over 80 percent of Americans have at least one credit card in their wallets, and credit card companies are raking in billions of dollars in junk fees that push us further into predatory cycles of debt.

The CFPB’s final rule caps late fees at 25 percent of the minimum payment due, alleviating some of the burden associated with accumulating debt. Instead of spending anywhere between $30 to $200 on late fees, people can now use that money to pay for gas, groceries, and other utilities (or, perhaps, to save for that family vacation).

Democrats are planning to continue taking on money-hungry companies and individuals to put money back into the hands of those who work hard for a living. This includes holding universities accountable as lenders, reducing textbooks costs, preventing schools from withholding transcripts over unpaid debts, and increasing college cost transparency. Democrats are also cracking down on mortgage and rental fees.These new policies give families all the information they need to make informed purchasing decisions up front, instead of suffering from the financial consequences later.

The hope is that large companies stop using inflation (caused or exacerbated by corporate greed) as an excuse to pass on outrageously high prices to increase their profits. The Biden Administration also hopes that the Strike Force on Unfair and Illegal Pricing gives Americans the option to choose goods and services that fit in their budget instead of breaking the bank.

These are great continued steps in the right direction, and a great addition to Democrats’ record of standing up for working folks and families.

Sam Inglot is the executive director of Progress Michigan, a nonprofit communications advocacy and government watchdog group.