Economists explain why proposed legislation might not stop junk fees

May 31st, 2023

Gary Hufbauer, a senior researcher, and Megan Hogan, a research analyst, both with the Peterson Institute for International Economics, discuss the findings of their research, which indicates the Junk Fee Prevention Act might not stop hidden fees and rising costs. (Photos courtesy of the guest listed above)

It’s estimated that Americans are collectively spending roughly $65 billion in junk fees.

In an effort to stop charges, President Biden recently introduced the Junk Fee Prevention Act.

The proposed legislation is expected to save Americans hundreds of dollars a month in fees on purchases such as flights, home rentals and concert tickets.

On Wednesday’s edition of “Closer Look,” Gary Hufbauer, a senior researcher, and Megan Hogan, a research analyst, both with the Peterson Institute for International Economics, talked with show host Rose Scott about the findings of their research. According to their study, the proposed legislation won’t completely eliminate junk fees and could potentially drive-up costs on the front-end of certain purchases.