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submitted 1 year ago by L4s@lemmy.world to c/technology@lemmy.world

FTC lays out new rule that could end hidden fees | The agency is proposing a new rule that could require businesses, from hotels to ticket sellers, to provide clear disclosures on costs and whether...::The US Federal Trade Commission is proposing a new rule known as the Trade Regulation Rule on Unfair or Deceptive Fees that it hopes will stop businesses from charging consumers hidden fees.

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[-] ericisshort@lemmy.world 38 points 1 year ago

Hey FTC: let’s have the govt set the example here and include sales tax in this rule. It is also a bullshit hidden fee, and there’s no reason we shouldn’t include it in the sticker price. You already require it to be included for gasoline, so why only gasoline?

[-] 5opn0o30@lemmy.world 7 points 1 year ago

Especially with hotels where there are 3 different taxes for $10s on the room.

[-] uis@lemmy.world 3 points 1 year ago

so why only gasoline?

Oil lobby

[-] ericisshort@lemmy.world 3 points 1 year ago* (last edited 1 year ago)

Why would the oil lobby want tax to be included gasoline? The added transparency only raises the sticker price which reduces sales.

[-] uis@lemmy.world 2 points 1 year ago

The added transparency only increases sales because people will buy cars knowing that listed price is what they are going to pay for gasoline.

[-] ericisshort@lemmy.world 4 points 1 year ago

It seems quite the stretch to think people would buy more cars because tax is included in the price of gasoline. Please provide some data that substantiates your theory.

[-] uis@lemmy.world 1 points 1 year ago

It seems quite the stretch to think people would buy more cars because tax is included in the price of gasoline.

In what shop would you go? In one that charges listed price or one that charges more?

[-] ericisshort@lemmy.world 5 points 1 year ago

Most people would go to the one with the cheaper posted price but with hidden fees than the one with the more expensive all inclusive price. Market data shows this tactic works, and the fact of the matter is that people are consistently fooled into paying higher prices because of hidden fees.

Why else would most companies consistently hide fees rather than be transparent unless it positively affects their bottom line?

this post was submitted on 12 Oct 2023
348 points (100.0% liked)

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