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RICHMOND, Va. — As National Consumer Protection Week kicks off, Virginia legislators have an opportunity to pass Senator Stella Pekarsky’s (D-Fairfax) Senate Bill 388, landmark legislation to ban surprise junk fees across the entire economy, including on concert tickets, hotel reservations, phone upgrades, rental apartments, meal delivery services, rental cars, Airbnb stays and more.
The Richmond Times-Dispatch called Pekarsky’s introduced bill “the most sweeping consumer protection measure to emerge in this year’s General Assembly session.” The bill was subsequently amended by the House to become more limited, but the Senate has the opportunity to reject those amendments this week.
The bill, championed by both Senator Pekarsky and Delegate Adele McClure (D-Arlington), would require that companies include all mandatory fees except shipping and taxes in the advertised cost of a good or service. The average family of four loses $3,200 per year to surprise fees – also called drip fees – that are revealed later in a transaction, often just as the consumer is ready to pay. This legislation aims to promote fairness and transparency in the marketplace, ensuring hardworking Virginians are not burdened with surprise hidden fees.
The Biden Administration has recently made junk fees a focus, announcing efforts to crack down on these deceptive additional charges. Just ahead of the Super Tuesday election, the president this weekend tweeted that junk fees in food delivery apps “rip consumers off” and highlighted his administration’s work on this issue. The Federal Trade Commission has even taken note of SB388, recently highlighting the bill in a letter to Virginia’s legislative leadership, noting long-standing consumer concerns and overwhelming public comment on this issue. The FTC public comments reflect the real financial struggles of Virginians who are hit with junk fees across the entire economy, including hotels, concerts, parking and apartments.
Before the bill was amended to cover a much more narrow scope, SB388 received bipartisan approval in the Senate with a 28-11 margin. The bill currently awaits Senate consideration of House amendments.
“What better time than National Consumer Protection Week to take aggressive action on junk fees, which have plagued Virginians for far too long,” said Rhena Hicks, Executive Director of Freedom Virginia. “Senator Pekarsky’s bill is an opportunity for Virginia to follow the lead of the Biden Administration in cracking down on all junk fees across the economy. There is overwhelming support and urgency behind this issue. For this bill to meaningfully lower the cost of living, it must comprehensively address all junk fees, not just those in one industry.”
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