Advocacy Submits Comments on the FTC’s NPRM on Trade Regulation Rule on Unfair or Deceptive Fees Personal Financial Data Rights

On March 7, 2024, the Office of Advocacy submitted comments on the Federal Trade Commission’s proposed Trade Regulation Rule on Unfair or Deceptive Fees.

The FTC asserts that the proposed rule addresses prevalent fee practices that are unlawful under Section 5 of the FTC Act, 15 U.S.C. § 45 because they are unfair or deceptive to consumers. The FTC has identified two practices that, for the reasons described herein, are unfair or deceptive practices under Section 5 of the FTC Act:

1. Practices that misrepresent the total costs by omitting mandatory fees from advertised prices
2. Practices that misrepresent the nature and purpose of fees or charges.

Advocacy expressed concerns about the FTC’s failure to properly describe the businesses that may be impacted by the proposed rule and the nature of the impact. Advocacy also expressed concerns about the FTC’s failure to consider less costly alternatives.

The FTC has limited authority over non-profits. Advocacy recommended that the FTC clarify that this rulemaking will not apply to non-profits.

Advocacy further recommended that the FTC prepare a supplemental initial regulatory flexibility analysis that fully considers the economic impact of the proposed rulemaking on small entities and alternatives that may reduce that burden.

For more information, please contact Assistant Chief Counsel Jennifer A. Smith at Jennifer.Smith@sba.gov.

Document

Comment Letter – Trade Regulation Rule on Unfair or Deceptive Fees FTC-2023-0064-0001 (PDF, 61.3 KB)