Trade Regulation Rule on Unfair or Deceptive Fees

FEDERAL TRADE COMMISSION <CFR>16 CFR Part 464</CFR> <DEPDOC>[Docket ID FTC-2023-0064]</DEPDOC> <RIN>RIN 3084-AB77</RIN> <SUBJECT>Trade Regulation Rule on Unfair or Deceptive Fees</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Federal Trade Commission <HD SOURCE="HED">ACTION:</HD> Initial notice of informal hearing; final notice of informal hearing; list of Hearing Participants; requests for submissions from Hearing Participants. <SUM> <HD SOURCE="HED">SUMMARY:</HD> The Federal Trade Commission (“FTC” or “Commission”) recently published a notice of proposed rulemaking (“NPRM”) in the <E T="04">Federal Register</E> , titled “Rule on Unfair or Deceptive Fees,” which would prohibit unfair or deceptive practices relating to fees for goods or services, specifically, misrepresenting the total costs of goods and services by omitting mandatory fees from advertised prices and misrepresenting the nature and purpose of fees. The NPRM announced the opportunity for interested parties to present their positions orally at an informal hearing. Seventeen commenters requested to participate at the informal hearing. The Commission's Chief Presiding Officer, the Chair, has appointed an Administrative Law Judge for the Federal Trade Commission, the Honorable Jay L. Himes to serve as the presiding officer of the informal hearing. </SUM> <DATES> <HD SOURCE="HED">DATES:</HD> <E T="03">Hearing date:</E> The informal hearing will be conducted virtually on April 24, 2024, at 10 a.m. Eastern. <E T="03">Participation deadline:</E> If you are a Hearing Participant and would like to submit your oral presentation in writing or file a supplementary documentary submission, you must do so on or before April 10, 2024. </DATES> <HD SOURCE="HED">ADDRESSES:</HD> Hearing Participants may submit their oral presentations in writing or file supplementary documentary submissions, online or on paper, by following the instructions in part IV of the <E T="02">SUPPLEMENTARY INFORMATION</E> section below. Write “Unfair or Deceptive Fees Rule (16 CFR part 464) (R207011)” on your submission and send it electronically to <E T="03">electronicfilings@ftc.gov,</E> with a copy to <E T="03">OALJ@ftc.gov.</E> If you prefer to file your submission on paper, mail it to the following address: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Mail Stop H-144 (Annex J), Washington, DC 20580. <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> Janice Kopec or Spencer Jackson-Kaye, Division of Advertising Practices, Bureau of Consumer Protection, Federal Trade Commission, 202-326-2550 (Kopec), 202-975-8671 (Jackson-Kaye), <E T="03">jkopec@ftc.gov, sjacksonkaye@ftc.gov.</E> </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> <HD SOURCE="HD1">I. Background</HD> Following public comment on an advance notice of proposed rulemaking, 87 FR 67413 (Nov. 8, 2022), the FTC published a notice of proposed rulemaking (“NPRM”), 88 FR 77420 (Nov. 9, 2023), entitled “Rule on Unfair or Deceptive Fees,” in the <E T="04">Federal Register</E> , proposing to add part 464 to 16 CFR, to prohibit unfair or deceptive practices relating to fees for goods or services, specifically, misrepresenting the total costs of goods and services by omitting mandatory fees from advertised prices and misrepresenting the nature and purpose of fees. A month before the NPRM was published in the <E T="04">Federal Register</E> for a 90-day public comment period, the Commission released a preliminary copy of the NPRM in a press release on October 11, 2023. In accordance with section 18(b)(1) of the FTC Act, 15 U.S.C. 57a(b)(1), which requires the Commission to provide the opportunity for an informal hearing in section 18 rulemaking proceedings, the NPRM also announced the opportunity for interested persons to present their positions orally at an informal hearing. Eight of the commenters requested the opportunity to present their position orally or participate at an informal hearing. Nine additional commenters requested the opportunity to participate in a hearing if one were held but did not request a hearing themselves. <HD SOURCE="HD1">II. The Requests for an Informal Hearing; Presentation of Oral Submissions</HD> Section 18 of the FTC Act, 15 U.S.C. 57a, as implemented by the Commission's Rules of Practice, 16 CFR 1.11(e), <SU>1</SU> <FTREF/> provides interested persons with the opportunity to present their positions orally at an informal hearing upon request. <SU>2</SU> <FTREF/> To make such a request, a commenter must submit, no later than the close of the comment period for the NPRM, (1) a request to make an oral submission, if desired; (2) a statement identifying the interested person's interests in the proceeding; and (3) any proposal to add disputed issues of material fact to be addressed at the hearing. <SU>3</SU> <FTREF/> <FTNT> <SU>1</SU>  The FTC Act provides that “an interested person is entitled to present his position orally or by documentary submission (or both).” 15 U.S.C. 57a(c)(2)(A). </FTNT> <FTNT> <SU>2</SU>  16 CFR 1.11(e). </FTNT> <FTNT> <SU>3</SU>  16 CFR 1.11(e)(1) through (3). </FTNT> The following eight commenters requested an informal hearing generally in accordance with the requirements of 16 CFR 1.11(e):  <SU>4</SU> <FTREF/> <FTNT> <SU>4</SU>  In addition to this list, the Commission received a request from the Towing and Recovery Association of America, Inc. on February 23, 2024, more than two weeks after the close of the comment period, requesting an opportunity to make an oral presentation. Because any such requests must be submitted no later than the close of the comment period, 16 CFR 1.11(e), this request did not meet the requirements to be allowed an opportunity to present at an informal hearing. </FTNT> <FP SOURCE="FP-2"> 1. ACA Connects—America's Communication Association (“ACA Connects”)   ACA Connects “represents approximately 500 small and medium-sized independent companies . . . that provide broadband, phone, and video services to nearly 8 million customers and offer services to 18 percent of households nationwide.” ACA Connects, Cmt. on NPRM at n. 1 (Feb. 7, 2024), <E T="03">https://www.regulations.gov/comment/FTC-2023-0064-3143.</E> </FTNT> <FP SOURCE="FP-2"> 2. American Bankers Association and Consumer Bankers Association (“Bankers Associations”)   The American Bankers Association represents “the nation's $23.6 trillion banking industry, which is composed of small, regional and large banks.” Bankers Associations, Cmt. on NPRM at n.1 (Feb. 7, 2024), <E T="03">https://www.regulations.gov/comment/FTC-2023-0064-3139.</E> The Consumer Bankers Association is a “national financial trade group focused exclusively on retail banking and personal financial services—banking services geared toward consumers and small businesses.” <E T="03">Id.</E> at n.2. </FTNT> <FP SOURCE="FP-2"> 3. U.S. Chamber of Commerce (“the Chamber”)   The Chamber did not fulfill the requirement to identify its interest in an informal hearing proceeding. <E T="03">See</E> 16 CFR 1.11(e)(2) (containing requirements for requesting an informal hearing); U.S. Chamber of Commerce, Cmt. on NPRM (Feb. 7, 2024), <E T="03">https://www.regulations.gov/comment/FTC-2023-0064-3127.</E> Nevertheless, on its website, the Chamber describes itself as “the world's largest business organization [whose] members range from the small businesses and chambers of commerce across the country that support their communities, to the leading industry associations and global corporations that innovate and solve for the world's challenges, to the emerging and fast-growing industries that are shaping the future.” U.S. Chamber of Commerce, <E T="03">https://www.uschamber.com/about.</E> Based on this description, the Commission will allow the Chamber to participate in the informal hearing if it so chooses. </FTNT> <FP SOURCE="FP-2"> 4. NCTA—The Internet & Television Association (“NCTA”)   NCTA “represents network innovators, content creators, and voice providers that connect, entertain, inform, and inspire consumers nationwide. NCTA is the principal trade association for the U.S. cable industry, . . . [which] is also the nation's largest residential broadband provider.” NCTA, Cmt. on NPRM at n.1 (Feb. 7, 2024), <E T="03">https://www.regulations.gov/comment/FTC-2023-0064-3233.</E> </FTNT> <FP SOURCE="FP-2"> 5. International Franchise Association (“IFA”)   IFA represents “franchise companies in over 300 different industries, individual franchisees, and companies that support those franchise companies in marketing, law, technology, and business development.” IFA, Cmt. on NPRM at 1 (Feb. 7, 2024), <E T="03">https://www.regulations.gov/comment/FTC-2023-0064-3294.</E> </FTNT> <FP SOURCE="FP-2"> 6. BattleLine LLC   Jeremy Roseberry, of BattleLine LLC, is “a professional with expertise in financial market structure and technological solutions for fee transparency.” BattleLine LLC, Cmt. on NPRM at 2 (Dec. 5, 2023), <E T="03">https://www.regulations.gov/comment/FTC-2023-0064-2574.</E> </FTNT> <FP SOURCE="FP-2"> 7. IHRSA, the Global Health and Fitness Association   IHRSA is a trade association that represents “health and fitness clubs, gyms, studios, sports and aquatic facilities, and industry partners.” IHRSA, Cmt. on NPRM at 1-2 (Feb. 7, 2024), <E T="03">https://www.regulations.gov/comment/FTC-2023-0064-3269.</E> </FTNT> <FP SOURCE="FP-2"> 8. National Taxpayers Union Foundation   NTUF is an organization of experts and advocates who “engage in in-depth research projects and informative, scholarly work pertaining to taxation in all aspects” and have worked to develop “responsible tax administration for nearly five decades.” NTUF, Cmt. on NPRM at (Feb. 7, 2024), <E T="03">https://www.reg ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 59k characters. Full document text is stored and available for version comparison. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━