Hidden Fees
Hidden Fees, or surprise mandatory fees added at checkout, cost Virginians thousands of dollars.
The Problem
Hidden fees exist across the economy, but consumers often see them in live-event ticketing, hotels, rental cars, cable and cell phone bills, utilities, and rent. Right now, Virginia consumers are often charged up to 20% more for a transaction at checkout than was initially advertised, costing the average family of four an extra $3,200 per year. Hidden fees especially harm consumers who may not be as proficient in English, lower-income Virginians, and Virginians of color.
Hidden fees hurt consumers by creating an unnecessary financial burden. Hidden fees often harm responsible businesses, especially small ones that price their products fairly and transparently. Despite offering competitive prices, these businesses may appear more expensive, putting them at a disadvantage compared to companies, often large corporations, that conceal their prices through the use of hidden fees.
The Solution
Legislation to ban Hidden Fees in Virginia follows the path that states across the country – ranging from neighboring states like North Carolina, Democratic states like California, and Republican states like Ohio – are blazing trails to promote fairness and competition in our economy and making sure Virginians can keep more of what they earn.
The fight to ban Hidden Fees in Virginia has been led by Senator Stella Pekarsky and Delegate Adele McClure, both of whom introduced such bills to the General Assembly in 2024. This year, both legislators carried bills to ban Hidden Fees that passed in the General Assembly with bipartisan support. Both bills were amended by Governor Glenn Youngkin to create loopholes for big corporations, exempt certain industries, and delay enactment of any hidden fees legislation until 2026. The General Assembly rejected the governor’s amendments, and the bills will not be reconsidered in 2025.
It is time to address this unfair price gouging of hardworking Virginians so that no one gets caught in an annoying and predatory scheme and pays more than they budgeted because a fee got added onto their purchase at checkout.
